Trade of the day: AUDNZD

audnzdh1

The pair has technically maintained a downward trend for days now and the negative sentiment still seems to have some way to go. Price opened today below the pivot point which is at 1.0390. The pivot is also a resistance point and provided price is below it then the likelihood of further downsides exist.

The RSI is below the neutrality point of 50 and hence gives potential for continued bearish movement. The MACD is negative and the 50 MA is positioned above price.

Best trade recommendation for this pair will be to open short positions and place targets around 1.0330 and further down at 1.0320. Some caution should be taken with these positions and stop losses should probably be placed just above the pivot price. In the event the market does reverse and hits the stop loss, this would mean the pivot/resistance has been broken and that would bring chances of further bullish movement. In that scenario long positions can then be opened with targets around 1.0410 and 1.0420.

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