AUDNZD has been a good mover lately and seems have fallen back into a nice stable bearish trend.
The bearish moment just recently pushed price through the floor of a range it has been stuck in. I’ve labeled the old range support in the chart above and you can see the market has clearly broken though and closed aggressively lower.
Not ready to take action yet though, hopefully there will be a better opportunity to get into this breakout. It’s what I call the ‘breakout and re-test’ pattern – where the market breaks a containment line, comes back to retest it from the other side and respects it as new support or resistance ( as swing level ).
If AUDNZD produces and bearish signal off this level we can look to set up a short position.