Now we are clear of 1.13 we can seek bullish setups in line with the breakout and anticipated near-term bias.
View previous analysis - AUDNZD on brink of breaking above 1.13
Price took the path of the counter-bias to see a pullback to the 1.10-1.12 zone before accelerating up through 1.13 resistance.
The initial acceleration yesterday was caused by weak NZ business confidence which printed it's first pessimistic reading (below zero) since Jan 2011, before seeing an eventual break above 1.13 at the UK open.
Price action favours contined near-term strength
The 8 and 21 eMA's continue to act as dynamic support whilst price remains within the aggressively bullish channel, with yesterday's Marabuzo Candle adding further credence to near-term gains.
Assuming the gap seen above 1.0914 does turn out to be a successful 'measuring gap' then we can assume the next target to be around the 100% at 1.1436. As we are within striking distance of this target I suspect we should see a break through this resistance sooner than later, to go on and test the 1.160-65 within the coming week/s. However if the advance is to retain the current velocity we could be reaching this area within a few trading sessions.
Methods to consider:
Now above 1.13 we need to choose areas to consider buy setups. An obvious pace to consider is a retest of 1.13 but, due to recent bullish momentum, suspect we may be bearing the end of the correction from yesterday's highs and for gains to continue.
At time of writing we have stalled at the lower regression line (bullish channel), the Daily Pivot Point and the 21 hourly eMA, which may provide a buy zone to enter live at market.
If we are to assume an eventual run towards the 100% projection the we could achieve a minimum 2:1 reward to risk (r:r) ratio by entering live at market and a stop below 1.13. This r/r may be increased with a buy-limit order loser towards 1.13 but we risk the chance of missing the trade (trading is all about compromises).
Alternatively we can await for a bullish setup to materialise on H1 and seek bullish trades on lower timeframes.