The King of Consistency remained true to its word last week as the pair respected our ascending 4H trend line perfectly. Price continued its march higher, holding above the now support level at 1.0610 and then continuing upwards during the later stages of the week, eventually closing at 1.0673.
AUD/NZD looks to have set itself up for a test of the descending daily trend line at approx. 1.0710, which is something we have had on the cards for a while. Price may even retest the resistance level at 1.0750 if it pushed higher. Be careful of fake breakouts! This upcoming week will now be a crucial test for the overall bearish trend that price has been following since August.
If price rejects the upper boundary of the descending daily channel structure, the larger timeframe bearish trend will likely continue. However, a break and close above 1.0750 on the daily timeframe could cause us to question the trend that has controlled price since Aug.