AUDNZD H1 - Bullish Rectangle Set-up

stayed in a range of 76.5 pips during this past week - represented by the yellow shading in the chart above. The pair also stayed inside the 2 week Bullish Parallel Channel, bouncing off supports and resistances nicely.

ENTRY
The overall trend is currently BULLISH for the in the near term. With a break of the Upper Range Line @ 1.10238, we could argue for a move higher as Rectangle Patterns are considered to be one of the Continuation Patterns. We could place a BUY STOP ORDER at 1.10250 to catch the break.

STOP
Upon entry of the trade, we would then place our Stop Loss at the Range Mid-point @ 1.09845 in discipline of protecting capital and keep a tight stop on this one.

TARGET
The current rectangle measures 76.5 pips. Therefore our target on a break of the Upper Range Line is roughly 76.5 pips from entry. That puts our target right around
the round number of 1.11000 - and since round numbers tend to give us levels of resistance - let's back off our TARGET to 1.10990

NEGATION
A sustained break below the Lower Range Line at 1.09500 would negate this perspective and we head back to the charts to find a new pattern and entry.

SUMMARY
We are BULLISH on in the near term and believe that when this rectangle breaks it will break to the top-side in continuation.
Look to get Long at 1.10250 with a tight stop at 1.09845 and a Target of 1.10990.

Note

Had a short dip outside the rectangle, but price is moving back into view again. We will keep this order open to see what happens over the next few sessions.

Trade active

Trade initiated with break of 1.10240

Trade closed: target reached

Target Reached for full profit.

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