AUD/NZD – Potential inside day candle at trend line resistance

AUDNZD D1 (09-26-2016 1714).png

The daily chart above shows the cross is grappling with the larger falling trend line hurdle. However, shorting the pair here would be too early.

Note that today’s candle could easily turn around to be a ‘inside day’ candle stick formation. By default those are neither continuation nor reversal formations. We need to see the in the light of the larger trend…which is bullish (correction in a larger downtrend).

Given the overall situation an inside day candle today could signal reversal from the trend lien hurdle tomorrow. However, caution is advised. Ideal Sell trade would be on Wednesday in case Tuesday’s candle is bearish.

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