Looking for a Breakout in AUD/NZD

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Looking for a Breakout in AUD/NZD

The AUD/NZD has been consolidating in December after a bearish November. Let’s see what we can expect as we await a breakout.

The range in December roughly between 1.0760 and 1.0870 follows a November decline from 1.1304. Now, the bias is bearish, especially if price can hold below 1.0810, the middle of the range. This would maintain a bearish outlook, and a break below 1.0755 should open up the 1.0640-1.0650 area lows form July. A break above 1.09 might be needed to open up further bullish correction, and a hold above 1.0810 might be needed to confirm December’s range so far as a price bottom. Even then, we need to monitor the 1.0950-1.10 area for resistance because this is the previous support are for a multi-month range. At max, our bullish outlook should be limited to the 1.1050 area, where there is a key support/resistance pivot, and where the 100-, and 50-day SMAs reside.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.