AUDNZD: A Sharp Price Rejection from the Key Resistance Level

AUDNZD has reached a key resistance level of 1.1000, followed by an immediate sharp price rejection (a doji star plus a large bearish engulfing candle). Since 2020, all two long-term bearish reversals have occurred from this level. However, we know that the trend of AUDNZD is persistent. Therefore, we want to make sure that a reversal has actually occured before throwing in sell positions. It is good to enter the market late but right rather than early but wrong.

Entry Criteria:
After a rejection from the 1.1000 level, the price has reached a support level of 1.8000-1.8200. From here, we expect the price to bounce up again to retest the high, or if not, the 1.0900 level. If a reversal has really taken a place, then the price should break the support area of 1.0800, plus a daily candle closing below that support level. Only then, we can prepare our sell entries at the neckline area to capture the retest and ride the wave down to the first target of 1.0600 level.