Good afternoon Forex Kings,
On a positive note, during these uncertain times we have had a great run over the past two weeks.
Lets keep up the good work!
The AUDNZD touched a huge double bottom on the weekly charts and has now created an ‘inside bar’. This can indicate reversals in the market when found at support or resistance.
This set up is purely technical, let’s jump into the analysis.
AUDNZD – Weekly Charts
the 1.0020 level appears to be a historic support level. We have seen very large wicks coming to the downside of the charts meaning buyers are potentially stepping into the market.
AUDNZD – Weekly charts
Last weeks candle opened and closed within the week previous. This formation is known as an inside bar. When these are found at key zones like support it can indicate a potential reversal.
AUDNZD – 1 Hour Charts
We can look at using a low risk strategy here with a fairly tight stop loss. Our stop loss is below the trend line and also the 61.8% FIB level.
Trade Set up: BUY AUDNZD (market Price 1.0200) and stop loss set at 1.0150, take profit target 1.0380.
Stop loss: 50PIPS
Take Profit: 180 PIPS