AUD/NZD has been trading sideways for a little more than a week as we can see in the 1H chart. As we wind down this week, the pair is testing the range support at 1.07. Let’s take a look at the breakout attempt.
The last several times price came down to about 1.07, we first saw a sharp rebound. Then we saw the inability to get to 1.07, and then another sharp rebound this week. This time around it looks different. Price action looks less jumpy.
Still, a break above 1.0736 might take away the pressure from the 1.07 low and keep AUD/NZD neutral-bullish, neutral because of the current range-bound action and bullish because of the prevailing uptrend.
A break below 1.07 will open up the 1.0550 support pivot. Let’s limit the bearish outlook to this level since the prevailing trend is bullish. Also, after a breakdown, if there is a pullback, see if price can be held below 1.0775 and the 1H RSI below 60. If not, the breakdown might be a false one, which often translates into a bullish breakout.
To the upside, if we use the width of the current range (1.0890-1.07) as a projection, a bullish break above 1.0890 should target 1.1080. We should also watch for stickiness around the 1.10 psychological handle.
So let’s monitor price here around 1.07. Will there be break down, or will price remain in the range, with prevailing bullish bias.
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