AUDNZD: Big Move hints at a possible reversal
On a higher time frame, movement of AUDNZD is clearly down
- 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
- 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.
- Looking at the Bullish Expansion as an Upflow, we can see that the most recent retracement has found support on previous boxes highs.
- Going into the H1 time frame, we can see a small 1234 pattern formed.
Next Supports & Resistance levels
- 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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