AUDNZD H1 - Bullish Rectangle Set-up

AUDNZD stayed in a range of 76.5 pips during this past week - represented by the yellow shading in the chart above. The pair also stayed inside the 2 week Bullish Parallel Channel, bouncing off supports and resistances nicely.

ENTRY
The overall trend is currently BULLISH for the AUDNZD in the near term. With a break of the Upper Range Line @ 1.10238, we could argue for a move higher as Rectangle Patterns are considered to be one of the Continuation Patterns. We could place a BUY STOP ORDER at 1.10250 to catch the break.

STOP
Upon entry of the trade, we would then place our Stop Loss at the Range Mid-point @ 1.09845 in discipline of protecting capital and keep a tight stop on this one.

TARGET
The current rectangle measures 76.5 pips. Therefore our target on a break of the Upper Range Line is roughly 76.5 pips from entry. That puts our target right around
the round number of 1.11000 - and since round numbers tend to give us levels of resistance - let's back off our TARGET to 1.10990

NEGATION
A sustained break below the Lower Range Line at 1.09500 would negate this perspective and we head back to the charts to find a new pattern and entry.

SUMMARY
We are BULLISH on AUDNZD in the near term and believe that when this rectangle breaks it will break to the top-side in continuation.
Look to get Long at 1.10250 with a tight stop at 1.09845 and a Target of 1.10990.

Comment:

Had a short dip outside the rectangle, but price is moving back into view again. We will keep this order open to see what happens over the next few sessions.

Trade active:

Trade initiated with break of 1.10240

Trade closed: target reached:

Target Reached for full profit.