AUD/NZD CHANNEL TEST

AUDNZD

The rate is currently testing the almost year-long falling channel resistance. This channel's slope has been very important for the past year and a break above would indicate a more meaningful retracement higher.

I am looking for a close above December's high at 1.0525 to enter a small long position to target the possible inverse head and shoulders pattern neckline around 1.0740.

A strong rejection from the current levels would invalidate my immediate bullish outlook for the pair as it may take the rate back down towards the lows around 1.0370.