Bullish Flag at AUD\NZD | FOREX Analysis

On Daily charts of the AUD\NZD we can see several patterns:
The biggest pattern is a variation of a Double Top on the 1.2900 Resistance level. This is generally a reversal pattern that indicates a top of price and a reversal in trend, but in this case its probability of success are weak. The reason for this is the Bullish Flag that price has formed during the last month. The flag is a continuation pattern, meaning that it usually result in the continuation of previous trend. Price is now testing the upper trendline of the Flag, and it does so with great momentum so chances for breakout up are big.

This is the third time price tests the 1.2900 Resistance level, and each time it reaches higher and higher lows. This indicates that the Buyers are taking command of the AUD\NZD and that a bullish movement is likely to occur.

Trading Opportunities
Wait for the flag to break out. Aggressive traders would enter at the breakout itself, and conservative traders would wait for price to perform a pullback before entry. Be careful of the 1.2900 Resistance level. Despite the great bullish momentum this is still a strong level that may serve as a boundary that price will have trouble breaking.

General Conclusion
Bullish movement is likely to occur.