AUD/NZD is likely developing a bullish reversal in 2017. Looking at the daily chart, we can see that 2016 since May was a year of consolidation (roughly between 1.0250 and 1.0750). Then, in the early part of 2017, price started to break above this consolidation pattern.AUD/NZD Daily Chart(click to enlarge)Breakout Confirmation.- First of all note that the bullish breakout broke above a neckline around 1.0750, then a couple of falling trendlines.- After this sharp bullish breakout tagged 1.10, we can see that price started to retreat.- Note that price came down to test the broken consolidation range as a price bottom. So far, it looks like the market is respecting this price bottom.- Also we can see that the RSI held above 40 for the most part after retreating from above 70. This shows maintenance of the bullish momentum.Upside.- The bullish outlook is still within a larger period of consolidation, not just the range in 2016. - The first bullish target would be the 1.10 mark, which showed resistance in March.- The weekly chart below shows a larger range between roughly 1.0010 and 1.1420. We should probably start anticipating resistance around 1.13 if price does indeed push above 1.10.AUD/NZD Weekly Chartz(click to enlarge)