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Will AUD/NZD Chew Up its Tail?

August has been a month of up and down for AUD/NZD. In fact, the pair has been consolidating choppily since making a high on the year at 1.1428. 

AUD/NZD Daily Chart 8/26
(click to enlarge)

The daily chart shows the consolidation AUD/NZD has ben in since June. The market is still in this mode, but there are a couple of interesting things. 
1) Price just failed to break below 1.0880 to continue a slightly bearish correction. 
2) The RSI is holding above 40 despite a brief break. 
3) Price is still above the 200- and 100-day simple moving averages.

These are signs that the market is maintaining some bullish bias within consolidation. This week we are seeing some signs that the mode is shifting away from consolidation towards a possible bullish continuation. But let's not get ahead of ourselves, and monitor the price action in the 1H chart. 

AUD/NZD 1H Chart 8/26


(click to enlarge)

The 1H chart shows that the market is starting to show some signs of bullish "upheaval" after it found support just above 1.09 last week. There is along tail that shot up to 1.1388. This paves the way for price action in this week and the next to "chew through" the tail and attack the consolidation resistance area seen in the daily chart (1.13-1.1388).