In AUDNZD there was a large sell off from the summer of 2012 until early 2015, from 1.30 to just above parity. Price has since been consolidating forming a ‘pennant’ which according the textbook, is a continuation pattern. In December we broke out of the ‘pennant’ to the downside and we’ve since retraced to the base. All Ichimoku indicators are aligned to indicate that price may go lower. Price is trading below the ‘kumo’ together with the Tenkan-sen which is below the Kijun-sen (bearish). The Chikou-span is also below the ‘kumo’ and the future cloud has now turned bearish.
Last Wednesday (09/01/2019) there is a ‘bearish engulfing’ candle at the base, we have hidden bearish divergence on RSI and the Ichimoku is also fully bearish on the daily timeframe.
On the 1H chart, a ‘head and shoulder’ pattern has formed with price breaking below the neckline at the end of last week. We may see a retest of the ‘neckline’ during the Asian session or it may just drop. As I’ll be asleep, I'm looking to enter at around 1.05640 with my stop at 1.05840.
Last Wednesday (09/01/2019) there is a ‘bearish engulfing’ candle at the base, we have hidden bearish divergence on RSI and the Ichimoku is also fully bearish on the daily timeframe.
On the 1H chart, a ‘head and shoulder’ pattern has formed with price breaking below the neckline at the end of last week. We may see a retest of the ‘neckline’ during the Asian session or it may just drop. As I’ll be asleep, I'm looking to enter at around 1.05640 with my stop at 1.05840.