AUD/NZD Forming a Classic Cup Pattern – Breakout in Sight?
The AUD/NZD pair is currently showing a promising bullish setup on the 4-hour chart, forming a classic Cup Pattern, which is often a strong signal of trend reversal or continuation.
After a prolonged downtrend, the price found support near 1.0650 and began a steady climb, forming a rounded bottom – the hallmark of the Cup pattern. This structure suggests that the bearish momentum has weakened, and buyers are gradually taking control.
Key Levels to Watch:
Neckline Resistance: 1.1000 – Price is currently testing this crucial level. A clean breakout and close above this zone could confirm the bullish setup.
First Target: 1.0910 – This is the first short-term resistance where price might react after a breakout.
Final Target: 1.1000 – Based on the depth of the cup, this is the projected move post-breakout.
Trading Plan (Not Financial Advice):
A breakout with volume above the 1.0850 neckline could open the path for bullish continuation. Traders might consider watching for a retest and confirmation before entering.
Chart Pattern Insight: The Cup pattern is widely respected for its reliability in forecasting trend continuation. In this case, it’s signaling a potential bullish shift in AUD/NZD after weeks of consolidation and recovery.
Always apply proper risk management and confirm with additional indicators before making trading decisions.
After a prolonged downtrend, the price found support near 1.0650 and began a steady climb, forming a rounded bottom – the hallmark of the Cup pattern. This structure suggests that the bearish momentum has weakened, and buyers are gradually taking control.
Key Levels to Watch:
Neckline Resistance: 1.1000 – Price is currently testing this crucial level. A clean breakout and close above this zone could confirm the bullish setup.
First Target: 1.0910 – This is the first short-term resistance where price might react after a breakout.
Final Target: 1.1000 – Based on the depth of the cup, this is the projected move post-breakout.
Trading Plan (Not Financial Advice):
A breakout with volume above the 1.0850 neckline could open the path for bullish continuation. Traders might consider watching for a retest and confirmation before entering.
Chart Pattern Insight: The Cup pattern is widely respected for its reliability in forecasting trend continuation. In this case, it’s signaling a potential bullish shift in AUD/NZD after weeks of consolidation and recovery.
Always apply proper risk management and confirm with additional indicators before making trading decisions.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.