AUDNZD: SELL after a little retracement

21 thg 11, 2021

AUDNZD pair is trading in a well formed bearish channel making lower highs and lower lows on daily and 4 hourly charts. On daily chart it closed with a bullish hammer near a strong weekly support line S1 on last trading day. Moreover it is in lower portion of channel. It is expected to retrace from here or from a nearby monthly resistance line S2 right on the lower edge of the channel after which it is bound to fall if the trend continues. Following DOW theory my entry will be with a SELL stance in the upper segment of the channel. Entry1 at R1 and Entry2 at R2, both daily resistance. Stop loss is just above last lower high near 0.5 FIB level. TP1 is at strong monthly support S2 for half of my holdings. TP2 is left open to ride with the trend.