Has The AUDNZD Reaches Market Bottom - Will It Hold?

Jan. 21, 2014 11:36 PM ET

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Seeking Alpha Analyst Since 2013

I have been involved with Forex trading for about 6 years now and after being disappointed with mainstream indicators I discovered price action trading relatively early in my career. Since then I have made price action the focus of my Forex trading, embracing it with a passion. I don't like using indicators, Fibonacci or pivot levels, I only use the candlesticks to base my trading decisions on. A year into my Forex career became acquainted with Pearce and we started a Forex price action educational blog together at www.dnbforexpriceaciton.com. Since then we have been teaching new aspiring traders how to approach the markets using only price action, high return money management model and sound understanding of trading psychology.

AUDNZD has been on an absolute terror of a downtrend the last few months, it seems like nothing is able to stop the trend in it's path. If we have a look on the monthly chart we can see prices have not been this low since 2005! Although we did come close during the 2008 market crash.

The monthly support level being tested is basically the market bottom, it's where the AUDNZD has reached its lowest points and reversed. This major turning point on the chart is a very significant factor for us price action traders. We are watching for any strong bullish signals that indicate the level is holding strong and to identify any bullish trading opportunities.

This is counter trend trading, which is risky but does pay off if it works out. It's best to wait for that powerful counter trend setup to form before taking action, don't chase price around the charts hoping to hook line and sinker a move, you will probably only hit a snag.

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