Fan Yang
0
All posts from Fan Yang
Fan Yang in Fan Yang,

AUD/NZD Waiting to be Released

He AUD/NZD is still stuck in a consolidation range that has contained price action since July when price stalled around 1.1425. It then found support around 1.0890 and has since been kept in captivity between these two levels. 

AUD/NZD Daily Chart 9/11

(click to enlarge)

There is no surefire way to predict which way price action will break this range, but the technical picture shows bias towards the upside. 
1) The prevailing trend is bullish.
2) The prevailing bullish trend is intact because price is mostly still above the 200-, 100-, and 50-period SMA and the 4H RSI is still mostly above 40.
3) There are larger bullish daily candles inside the range.

There is anecdotal evidence that the longer the consolidation, the stronger the breakout will be. So as this consolidation range starts to go into its 3rd month, let's be prepared for a breakout, more probably to the upside than the downside.