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.