AUD/NZD has been cruising higher inside an ascending channel for greater than a month already, and it looks like one other test of support is due.

Take a have a look at these inflection points on the 4-hour time-frame!

AUD/NZD 4-hour Forex Chart by TradingView

Earlier today, the Australian economy printed a stronger than expected December CPI reading of two.3% versus the consensus of a 2.2% year-on-year increase and the sooner 2.1% figure.

Some say that this upbeat inflation print might be enough for the Reserve Bank of Australia (RBA) to beat back any easing plans until May, possibly keeping their currency afloat.

Will AUD/NZD give you the option to resume its climb, though?

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. For those who haven’t yet done your homework on the Australian dollar and the Recent Zealand dollar, then it’s time to examine out the economic calendar and stay updated on every day fundamental news!

The 100 SMA is above the 200 SMA on this chart, suggesting that the uptrend is more more likely to resume than to reverse. At the identical time, the pair appears to be attracting buying interest on the 61.8% Fibonacci retracement level just above the ascending channel support.

Still, a bigger dip could find more buyers on the channel bottom or at S1 (1.1020) so keep an eye fixed out for any reversal candlesticks indicating that the rally is about to realize traction. On this case, look out for a continuation of the climb to the swing high near the 1.1100 major psychological mark or to the channel top near R1 (1.1120).

However, long red candlesticks closing below the channel support could mark the beginning of a reversal that would drag AUD/NZD to the following downside goal at S2 (1.0970) or lower.

Whichever bias you find yourself trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that would influence overall market sentiment!