pavan15589
Long

AUDNZD - Pipping from a probable breakout

FX:AUDNZD   Australian Dollar/New Zealand Dollar
AUDNZD             has stayed in a non-volatile consolidation for a really long time. The long tails at the top and bottom of the candles indicate the low volatility of the pair.
Observing the price action, the pair has been consistent in its behavior giving us a lot of clues of its intention along the way. These clues may be hinting towards a classic Cup and Handle formation before making a break towards the upside.

Reading precisely, we have seen the pair making lower lows and lower highs forming a bottom slowly before subtly changing its trend. The pair has made a false breakout before falling back into the range having already tested the resistance thrice, it seems faintly evident as the price has *stayed away from the resistance for a while, it might bounce back down again off of the resistance before heading back up forming the 'handle' of the pattern.

On the other hand, the pair hints towards an immediate breakout. The slow approaching of the pair towards the resistance shows that bulls might kick in at the level to drive the prices up and we could as well see large candles forming following the breakout which might lead to a quick exhaustion of the trend before heading back down for a short term trend reversal.

In the nutshell, the pair seems to have made its intention clear and its easier to catch the breakout once this is understood.

*A regions polarity (resistance or support) becomes stronger with time when the price stays away after having touched the region.
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