AUD/NZD Sideways Trend and Potential Breakout

In today’s technical piece, I would like to discuss the Australian Dollar to New Zealand Dollar (AUD/NZD) pair, which has been in a sideways trend this week. The price is currently confined between the 38.2% Fibonacci retracement level on the upside, marked in yellow, and the 50% Fibonacci retracement level on the downside.

To indicate an uptrend, the price needs to break above both the 38.2% Fibonacci level and the orange dynamic resistance, a clear downtrend line. A daily close near the pink rectangle would confirm this bullish scenario. Conversely, a bounce off these resistances heading towards the 50% Fibonacci level would suggest a sell signal. A breakout below the 50% Fibonacci level would confirm the negative sentiment.

We need to wait and see which direction the market chooses. Personally, I favor a bullish breakout because it would form a very appealing technical pattern, indicating strong upward momentum.

Source: https://www.axiory.com/analytics/technical-analysis/aud-nzd-sideways-trend-and-potential-breakout