AUDNZD Potential Buy Setup: Rebound from Key Support
Updated
The pair is trading around 1.10388 at this time of posting, presenting a potential buy opportunity as it approaches a significant support zone. Here’s a detailed analysis:
Key Support Zone:
The price is testing the 1.1005–1.1030 support area, which has historically acted as a strong demand zone.
The 200 EMA is providing additional support, increasing the likelihood of a rebound.
Indicators:
The Stochastic RSI is in oversold territory, signaling that the pair might be due for a bounce.
Declining bearish volume indicates weakening selling pressure as the price approaches support.
Entry Point:
Enter a long position around 1.1030–1.1040 once bullish confirmation (e.g., a hammer or bullish engulfing candle) is observed.
Stop Loss:
Place the stop loss slightly below the support zone at 1.0990 to protect against a false breakout.
Take Profit:
Target 1: 1.1080 (recent resistance level).
Target 2: 1.1110 (major resistance near the previous swing high).
Risk-Reward Ratio:
This setup offers a favorable risk-reward ratio of at least 1:2, making it a viable trade with proper risk management.
Note:
If the price breaks and closes below 1.1000, the bullish scenario will be invalidated, and the pair may continue its bearish momentum. Ensure to monitor price action closely and adjust your trade plan accordingly.
Key Support Zone:
The price is testing the 1.1005–1.1030 support area, which has historically acted as a strong demand zone.
The 200 EMA is providing additional support, increasing the likelihood of a rebound.
Indicators:
The Stochastic RSI is in oversold territory, signaling that the pair might be due for a bounce.
Declining bearish volume indicates weakening selling pressure as the price approaches support.
Entry Point:
Enter a long position around 1.1030–1.1040 once bullish confirmation (e.g., a hammer or bullish engulfing candle) is observed.
Stop Loss:
Place the stop loss slightly below the support zone at 1.0990 to protect against a false breakout.
Take Profit:
Target 1: 1.1080 (recent resistance level).
Target 2: 1.1110 (major resistance near the previous swing high).
Risk-Reward Ratio:
This setup offers a favorable risk-reward ratio of at least 1:2, making it a viable trade with proper risk management.
Note:
If the price breaks and closes below 1.1000, the bullish scenario will be invalidated, and the pair may continue its bearish momentum. Ensure to monitor price action closely and adjust your trade plan accordingly.
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