- November 20, 2020
- Posted by: cabana-admin
- Category: Forex Basic, Forex Broker
- AUD/NZD MOVES TOWARDS THE DOWNWARDS ON POTENTIALLY STRONG SUPPORT LEVEL.
- BEARS ARE REMAINING ON CONTROL AND THE PATH MOVING DOWNWARDS.
Overview: The pair dropped to its lowest level since April. The more downfalls in this pair expected. The drop, according to analysts at ANZ bank said it is difficult to justify fundamentally, but the price action is bulletproof. The AUD.NZD crosses represent the two Australasian currencies, which are often traded similarly against other currencies due to similar geographical locations. The bears are on a high supply position this time. The bears are seeking an extension with the bearish impulse. Aussie jobs will be the key focus for today, as the kiwi takes a breather from being in the spotlight. The pair is currently trading at 1.0548 and firming off the overnight lows from a surge in the risk-on correlated KIWI. The pair is creating negative volatility in the market hence the bearish momentum created in the market.
Technical Analysis: From the technical point of view we can say that market is forming the lower lows in the market. The pair is creating bearish signals in the market. The bears are forcing to market to travel in a downward path. According to the daily chart, the market is creating lower swings in the market as the market following the trend towards the downside. The major line EMA is falling below SMA lines and creating the bearish signals. On the 4 hourly charts, we can clearly see that the market is falling towards the downside, and complete the downtrend line has been formed. We can expect that the market will fall below the support level 1.0500 in this chart. So from all the above studies, we can say better to sit at the sell-side. The sellers can earn profit now if they invest their fund towards the sell side The RSI is below the 50 levels which are favoring the bears. A bearish crossover on the MACD indicator is showing the weakness in the pair. Support of the level is 1.0475 followed by 1.0425 and the resistance is 1.0625 followed by 1.0675.
Trade idea: From the above statement with can conclude that sell at 1.0540 targets will be 1.0450 followed by 1.0300 stop loss will be 1.0726.
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