An ascending channel is a chart pattern in which the price of an asset is rising within two parallel trendlines. This pattern typically signals that the price is likely to continue rising, and suggests that traders should consider taking a short position, or selling the asset, if the price breaks out of the channel. In this case, the AUDNZD price broke out of the ascending channel, suggesting that the trend was likely to reverse and the price to fall. As such, traders should look to take a short position on the asset.
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