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AUD/NZD Lifts Off after a Clear-Out

The Australian Dollar got a boost after better than expected employment data for March. 

(source: forexfactory.com)
(Official Report from ABS)

I noted this week that I had a bullish bias on AUD/NZD. During the 4/13 session, I was looking at the 1.11 handle for support. However, price came down and even cracked the 1.1050 support area. This is known as a clear-out, where price "clears" out some stops here, before going the other direction.

AUD/NZD 1H Chart 4/14

(click to enlarge)

As we get into the 4/14 session, AUD/NZD is rallying sharply. We can see that it broke above falling trendlines, and established a price bottom. The bullish outlook is not just from the 1H chart, which has the 1.1330 high in sight. 

AUD/NZD Weekly Chart 4/14

(click to enlarge)

Note that AUD/NZD is also cracking a falling trendline going back to 2011. Furthermore, we can see an inverted head and shoulders forming. The bullish outlook thus has the 1.14-1.1420 area in sight as well. This would be the neckline resistance. If price can push above 1.1425, we are likely going to see further extension, with 1.16-1.1650 as the first short to medium-term target.