AUD/NZD produced a bearish candle on the daily chart. The H4 chart shows that the price headed towards the South with two bearish candles. The last candle came out as a bearish inside bar. If the current candle comes out as a bearish engulfing candle, the sellers may go short in the pair and drive the price towards the South further.
Chart 1 AUD/NZD H4 Chart
The chart shows that the price made a bearish move and had a bounce at the level of 1.06740. It then came down and had a bounce again. The price had its last rejection at the level of 1.06950 and headed towards the level of 1.06740 again. It produced a bullish inside bar. If the current candle comes out as a bearish engulfing candle closing below the level of 1.06740, the sellers may trigger a short entry.
Trade Summary:
Entry: Sell below 1.06740
Stop Loss: Above 1.06930
Take Profit 1: 1.06540
Take Profit 2: 1.06480
Take Profit 3: 1.6375