#AUDNZD could continue to trend lower as the New Zealand Dollar strengthens. This may provide us with a swing trading opportunity.
Watch the video to learn more…
When looking to get into a forex pair we want to identify the market environment before looking for a swing trading idea. In our week ahead analysis video we identified that seasonally the New Zealand Dollar performs well through the month of November which is being reflected on the strength meter currently. The Australian Dollar is currently at a reversal zone one the strength meter and we are beginning to see signs of the AUD pullback.
The weekly time frame is currently showing price in a downward trend making lower highs and lows. Recently the marker retested the key lows and continued to push to the downside. The price now looks to be in an impulsive phase which suggests we should see lower highs and lows on a lower time frame. If the price retests resistance and forms a bearish reaction we could look for a swing trading opportunity back to the majore support zone highlighted.
The 1hr Time Frame
As the chart shows here we can see a clear downward trend forming in this time frame which can offer us a swing trading idea if the price meets our trading rules. For our swing trading strategy we want to see the price reject the 4hr resistance level and form a bearish reaction from the hourly 50ema. A close below this ema will give us our entry to go short in the market.
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