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Will AUD/NZD Symmetrical Triangle Consolidation End in a Breakout?

January 5, 2020 (Last updated on January 27, 2020) by

The long-term downtrend is active in Aussie vs. kiwi trading since November 11. But since December 11, the pair has entered a consolidation phase that eventually took form of a classic example of a symmetrical triangle. Now, a successful breakout could start a new downward trend.

You can see the borders of the triangle marked with the yellow lines on the chart below. The cyan line shows my entry level and is placed at 10% of the triangle’s base width below the lower border. The green line depicts my take-profit level in case of a successful breakout; it is placed at 100% of the triangle’s base width below the lower border. I will set my stop-loss to the triangle’s highest point (1.04867). In my opinion, bullish breakouts should be ignored here as a symmetrical triangle is a trend continuation pattern. You can click on the image below to see a larger version of the chart:

AUD/NZD - Symmetrical Triangle Pattern on Daily Chart as of 2020-01-05

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/NZD pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2020-01-07: AUD/NZD fell yesterday and fell even more today, triggering my sell stop order at 1.03893 at 01:14 GMT. The stop-loss was set to 1.04867 and the current take-profit is at 1.02678. The latter is subject to going up each day with the incline of the green line:

AUD/NZD - Symmetrical Triangle Pattern on Daily Chart as of 2020-01-07 - Post-Entry Screenshot

Update 2020-01-27 15:17 GMT: After a storming pullback during the second decade of January, the currency pair has finally fallen through my take-profit line at 1.03109 just some 12 minutes ago:

AUD/NZD - Symmetrical Triangle Pattern on Daily Chart as of 2020-01-27 - Post-Exit Screenshot

If you have any questions or comments regarding this symmetrical triangle on the AUD/NZD chart, please feel free to submit them via the form below.

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