Welcome traders ! I hope you are doing well in this weekend. I hope that you have done a lot of works related to the past chart data. So I am going to show you a method to predict the AUDNZD currency pair. This week, it shows a downward momentum. Let’s analyze the AUDNZD 4 hour chart.
To understand this analysis, you should be able to draw trend lines and support & resistance lines.
You can see that there are two resistance lines affecting in the hourly chart. These lines come from the daily time-frame. So our predictions are mainly based on these resistance lines. If you need to learn how to draw these trend lines effectively, become a PipsDominator student today.
Also there are two trend lines drawn based on the price actions. So we can clearly see that the upper trend line has come to an end. So there will be a change of directions of the price.
In this chart, the price has come down passing the second bottom red line making it a resistance line. So we will have to look for price confirmation. If the AUDNZD is going up, the price should increase the bottom red resistance line and it should immediately come down after that. So it means the price is rejected by that resistance line
Let’s look at the hourly time frame of the same chart
So we expect the price to go down. If it happens as shown in the above chart, then you can place a sell trade with confidence. Do not just engage in early trades. First wait for confirmation. And then wait for the rejection of price by the resistance line. Then sell.
So that’s all for today related to AUDNZD. Let me know your experience with this strategy. I am expecting your valuable comments for this analysis also.