Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

AUD/NZD: sell target - 1.1100

By: Dmitriy Chernovolov

  • AUD/NZD reversed from pivotal resistance level 1.1300
  • Next sell target - 1.1100

AUD/NZD continues to fall after the price earlier reversed down sharply from the resistance zone surrounding the pivotal resistance level 1.1300 (which has been reversing the price from June of last year, as can be seen from the daily AUD/NZD chart below). The last two downward reversals from this resistance level created the two consecutive Japanese candlesticks reversal patterns – Bearish Engulfing and Dark Cloud Cover.

With the clear bearish divergence visible on the daily RSI indicator - AUD/NZD can be expected to fall further from the current levels toward the next sell target at the pivotal support level 1.1100 (former resistance level which stopped the minor impulse wave 1 in November).

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