AUDNZD Testing Resistance. How to trade a breakout or rejection.

The AUDNZD pair has been on a strong structured uptrend since September 16 2021 market low, within a long-term Channel Up. Recently, the pattern turned into a Bullish Megaphone according to the 1W RSI and MACD indicators, much like the one that started on January 2021.

The price is currently testing the top (Higher Highs trend-line) of the Megaphone. A break above it, should target the top of the Channel Up and complete the +4.70% rise that has been done the two times that the pair rebounded on the Channel’s bottom. A rejection either now or at the top of the Channel Up should be bearish medium-term, targeting at least the 1D MA50 (blue trend-line). A break below the Channel Up, establishes the Megaphone as the dominant pattern, and should test its bottom, along with the 1D MA200 (orange trend-line).

Tradingview link:

https://www.tradingview.com/chart/AUDNZD/UCEg3T2Q-AUDNZD-Testing-Resistance-How-to-trade-a-breakout-or-rejection