The AUDNZD is trending lower and already breaking the daily support level. This level has been acted as the strong level since price been rejected several times in the past as we can see in the daily chart below. This daily support level now acts as the new resistance level.
Recently price is on its way moving higher and try to retest the new resistance level. I will watch the level carefully and start hunting for any rejection or bearish price action signal.
If we zoom in the chart, we can see the price gap before making a move lower. Will I consider this price gap?
Theoretically, a gap is an area on the chart where the price of a pair moves sharply up or down with little or no trading between. Naturally, a gap should be “filled” or the price should move back to the original or pre-gap level, but it doesn’t mean a gap should “filled” immediately or as soon as possible. A gap can be “filled” on the same trading day, the next day, next week or anytime. Because of that reason, I would not too concern with the gap on AUDNZD and keep looking for the opportunity to go short at the old support/new resistance level which is below the original or pre-gap level.
AUDNZD daily chart – zoom out
AUDNZD daily chart – zoom in
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