AUD/NZD Now At Key HTF Level Time to Start SELLING???Today I have got a fantastic R/R SELL trade on the AUD/NZD for both short term and for holding long term.
We are now approaching again the top of a long term Monthly and Weekly range on the AUDNZD going back nearly 7 years. Also looking at the Monthly chart price has been rallying straight up to this area for 12 straight months/candles without much of a breather..
Looking at the Daily chart we can clearly see resistance building up here around the 1.12 area with the sideways movement and the MACD trending lower creating divergences even though price is popping up and down between 1.10 - 1.12.
From what I see here all evidence is pointing to a strong break down coming very soon. As we are clearly we are at an important Monthly and Weekly resistance level and have entered a Distribution period on the Daily charts after a long rally in price.
Long term idea is to start positioning myself into a Selling position to hold long term as can easily go all the way back down to the bottom of the range. Stop will be well above 1.13 and a clean break and close above the weekly/monthly range will invalidate the trade.
Short term Daytrading idea is simply to enter the market now @ 1.116 with stop loss above 1.12 and take profit @ 1.10.
Both the short term and long term idea have great R/R.
Hope you enjoyed today's analysis
