Looking at another 8H chart this session where the AUDNZD cross pair got my attention.
We can see the market has dived down into support level here. If you switch over to your weekly chart, you will see that this area is a decent place to expect the market to do a 180.
The price action has communicated to us that a reversal is underway by printing a large thick-bodied bullish rejection candle.
The thick body on the candle gives the signal good bullish authority.
A retracement price was available on the pull-back, but didn’t reach 50%. I think some quantitative analysis needs to be done here to determine an optimal retracement point for these 8 hour charts (Ill get onto that soon).
But for now this chart is still looking for a good buy. We could wait and see if we get another retracement opportunity, but I think this market is going to pop higher as it revers to the mean.
Best of luck on the charts.
Steve Epperson
If I were trading this, I may enter with a limit order around 1.03645 and place my stop around 1.03525. Risk reward, maybe 1:3. Otherwise, I might wait for another bull confirmation bar. I don’t see any reason to rush into a long position at what seems to have several bottoms in a tightening trading range. If you are brand new, you may want to wait for another opportunity.