AUD/NZD eyes breakout as Aussie CPI loomsAustralian Dollar / New Zealand DollarFOREXCOM:AUDNZDFOREXcomHaving coiled in an ascending triangle for much of April just beneath multi-decade highs, AUD/NZD is attempting a bullish breakout ahead of the release of key Australian inflation data, creating a setup that allows for longs to be set with a tight stop beneath for protection, targeting higher levels. The merits of the setup would be strengthened if we were to see a backtest and bounce from 1.2200 before entry. While an extension target of 1.2400 is one option given where the ascending triangle structure was established, 1.2500 or 1.2700 are other possibilities for longer-term traders, two levels that acted as support and resistance for lengthy periods in prior years. While RSI (14) has shown bearish divergence to the price for some time, that has not proven a reliable warning of an impending trend reversal yet. Sitting at 65 with MACD flatlining in positive territory, it suggests upside strength is not building meaningfully, but momentum still favours long setups over shorts. Good luck! DS