AUD/NZD has been in choppy trading as we can see on the daily chart. But, within this chaos, we can see some bullish signs.AUD/NZD Daily Chart 1/13(click to enlarge)Bearish-Neutral:- The market was bearish since March 2016, since AUD/NZD retreated from around 1.13.- As we can see on the daily chart, price started going sideways in July. - However, price has been kept mostly under the cluster of 200-, 100-, and 50-day simple moving averages (SMAs), a sign that the market is still bearish.Bullish Signs:- In the latter part of 2016, AUD/NZD showed some bullish signs.- For example, the September rally looks like a V-shape reversal.- Furthermore, the RSI pushed above 70 and has since held above 40 for the most part. This reflects maintenance of the bullish momentum that resulted from the V-shape reversal attempt.- Now, the market was in a choppy, falling wedge in Q4 of 2016. - But, as we got started with 2017, price rallied and broke this falling wedge. A push above 1.05 also broke the pattern of lower highs. - We are seeing price retreat from 1.0570 at the moment, but I think there is upside risk towards the 1.0750 common resistance area in the medium-term. AUD/NZD 4H Chart 1/13(click to enlarge)Anticipating Bearish Correction:- The 4H chart shows the market retreating after a pretty good price top this week.- We can see a bounce off of 1.0505, followed by a failure to reach back to this week's highs. This suggests some further bearish correction.- I think the 1.0460 area will provide support. - The market should not break below 1.0420. - It would also be good to see the RSI hold above 40 because it would reflect maintenance of the bullish momentum coming out of the bullish breakout in Jan. 2017. Reward to Risk Assessment:- If we have an entry at 1.0480 with a stop at 1.0410, the risk is 70 pips.- A conservative target of 1.0550 provides a reward of 70 pips.- The aggressive target of 1.0750 provides a reward of 270 pips. - We also should look at the 1.06 target for 150 pips .- I think the reward to risk is satisfactory with average around 2:1, but a potential of almost 4:1.