One look at the monthly time frame, and it’s easy to see why many traders forget about AUDNZD.
The pair has been sideways since late 2014 and looks choppy from the monthly chart.
However, some incredibly clean technicals are within that sideways action that spans nearly a decade.
For instance, in December, AUDNZD broke out of a near-perfect descending channel.
I mentioned this breakout in Discord on the day AUDNZD confirmed the break, which resulted in a 375-pip rally.
Since then, the currency cross has carved a potential rising wedge pattern.
The lower level extends from the December low, while the upper trend line is from January 13th.
Patterns like the one below often signal fatigue during uptrends.
That said, AUDNZD bears need to secure a 4-hour and daily close below trend line support to confirm the structure.
Attempting to short the pair until then is ill-advised, in my opinion.
One target on a break lower is 1.0750. It’s served as a pivot for AUDNZD since November 23rd and is also the 50% retracement of the recent rally.
But only a close below trend line support can confirm the breakdown.
Expect bulls to defend the 1.0950 area next week, while bears will look to hold AUDNZD below trend line resistance at 1.1060.