In November, AUD/NZD was bearish and made a key technical development when it broke below 1.09. This cleared a multi-month consolidation support and all of the 200-, 100-, and 50-day SMAs.AUD/NZD Daily Chart 12/5(click to enlarge) The daily chart also shows that since the breakdown, price has fallen below 1.08 and is now approaching a key rising support coming up from the 2014-low at 1.0491 made in late January. The daily RSI is around 30, showing slight oversold condition. Now, let's say we develop a bullish divergence as price approaches then bounces off the rising support, around 1.0735-50. 2014 was a sideways and slightly bullish market for AUD/NZD and in this condition, seeing the RSI in oversold area with bullish divergence vs. price at a key support is a valid reason to consider buying. Let's examine a trade plan to buy at 1.0750. Let's say the stop is 1.0680, where price would clearly break the trendline and below the 1.07 handle. A conservative target is 1.09. This yields a 70-pip risk at stop-loss, and 150-pip potential reward, which in turn gives us a slightly better than 2:1 reward to risk.