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AUDNZD: Big Move hints at a possible reversal

On a higher time frame, movement of AUDNZD is clearly down

Month to month movement is down on AUDNZD

Month to month movement is down on AUDNZD

  • Month to month on AUDNZD, we can see that price has been travelling downwards.
  • Over the last 5 months, price has turned flattish.
  • This indicates either a possible trend continuation or possible reversal.

Looking at the H4 charts, we can see a Big Move strategy

BigMove criteria clearly met on H4 charts of AUDNZD

BigMove criteria clearly met on H4 charts of AUDNZD

  • Previous week, price expanded and closed high above 7 H4 boxes high.
  • This clearly meets the criteria of a BigMove
    • Expansion of at least 35% above previous boxes highs
    • Close of at least 35% above previous boxes highs
  • This bullish expansion could be a sign that price might be reversing up.
Price is currently supported by previous weeks high

Price is currently supported by previous weeks high

  • Looking at the Bullish Expansion as an Upflow, we can see that the most recent retracement has found support on previous boxes highs.
Small 1234 on H1 can be seen

Small 1234 on H1 can be seen

  • Going into the H1 time frame, we can see a small 1234 pattern formed.

Next Supports & Resistance levels

Resistance aplenty on D1 chart

Resistance aplenty on D1 chart

  • Over head, there are many resistance that price must clear if it were to have any chance to head further up
  • All in all, this is a reversal trade, but it does illustrate well the need to wait for price action via Big Move

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2 thoughts on “AUDNZD: Big Move hints at a possible reversal”

  1. Calin Chong says:

    Super clear explanation !!!

  2. William Ang Yong Ching says:

    so one should plans trade such that all the above resistance to clear bef0re one should consider long or one can do counter trade? when it retrace to resistance and do short in the form of 1234?

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