I few things that I look for is:
- Clear support and resistance levels
- Clear market swings
Once I have that, I can figure out what the market is likely to do in the following hours/days.
And today, one of the clearest currency pairs to trade is the AUDNZD, and here is why.
AUDNZD Long term analysis
First of all, let me show you the daily chart:
The first thing that you notice in this chart is that its got clear S&R levels, and that makes me feel very comfortable looking for trade opportunities here.
The second thing that you notice here is that it just broke through an important resistance level (1.0888).
One of the main principles of technical analysis is that most of the time, the market moves from one level to the other.
With that being said, it is likely for the AUDNZD to reach its next LT resistance level which is at 1.1226.
I’ll look for long opportunities here until the AUDNZD reaches its next resistance level.
Now we need to look for our entry in the short term charts.
AUDNZD Short term chart analysis
Here is the hourly chart:
Now, you can use any system to look for your entry level, but I like to use classic support and resistance levels.
So my strategy here would be to wait for the market to retrace back to the ST support level (1.0974) to look for upward pressure to go long.
What do you think about my trading plan for the AUDNZD?
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