After breaking down from a multi-month range, this pair has pulled back to test the breakout point.
This could be a good opportunity to take a low-risk short trade, as the next support level is still quite far away, and the price action looks weak overall.
If you are more cautious, you can wait to see if price pulls back further to touch the downtrend line before shorting.
Nice idea on AUDNZD and there may be bearish potential as you have identified. The 1st resistance that we have identified is at 1.0876. It is a 61.8% Fibonacci extension , 50% Fibonacci retracement and a horizontal swing high resistance. Stochastic is approaching its support at 93% where a corresponding drop could occur. If a potential drop does occur, we may want to look at 1.0830 support level. It is a 61.8% Fibonacci retracement. Looking forward to see how things develop.
Please have a look at our idea and we would like to hear your thoughts.
Please have a look at our idea and we would like to hear your thoughts.