AUDNZD has been moving sideways recently with higher lows and lower highs creating a symmetrical triangle pattern on its 1-hour time frame. Price has just bounced off support and could be due for a test of resistance again.

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. This suggests that an upside break is more likely to occur than a break lower, although it’s also worth noting that the gap between the moving averages is narrowing to show a slowdown in bullish momentum.

Stochastic is turning higher to indicate that bulls could stay in control until the oscillator reaches overbought levels. The chart pattern is approximately a hundred pips tall so the resulting breakout could be of the same size.

The main event risks for the Aussie this week is Australia’s jobs report, which might show a 19.2K gain in hiring versus the earlier 27.9K increase. Stronger than expected results could lead to an improvement in the 5.6% jobless rate and more gains for the Aussie.

Meanwhile, the Kiwi has medium-tier reports like the FPI and Business NZ manufacturing index on the docket. China is also set to print its industrial production, retail sales, and fixed asset investment figures due this week and these could be catalysts for additional volatility as well.

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