Market Analysis: AUD/USD and NZD/USD Could Extend Losses

AUD/USD declined below the 0.6560 and 0.6540 support levels. NZD/USD is gaining bearish momentum below the 0.6030 support zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

· The Aussie Dollar started a fresh decline from well above the 0.6600 level against the US Dollar.

· There was a break below a key bullish trend line with support near 0.6540 on the hourly chart of AUD/USD at FXOpen.

· NZD/USD declined heavily from the 0.6120 resistance zone.

· There was a break below a major rising channel with support near 0.6060 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair struggled to stay above the 0.6600 level. The Aussie Dollar started a fresh decline below the 0.6560 support against the US Dollar.

There was a break below a key bullish trend line with support near 0.6540. The pair even settled below 0.6540 and the 50-hour simple moving average. A low is formed near 0.6509 and the pair is now consolidating losses.

Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 0.6616 swing high to the 0.6509 low at 0.6540.

The next major resistance is near the 50% Fib retracement level of the downward move from the 0.6616 swing high to the 0.6509 low at 0.6560, above which the price could rise toward 0.6600. Any more gains might send the pair toward 0.6615.

A close above the 0.6615 level could start another steady increase in the near term. The next major resistance on the AUD/USD chart could be 0.6650.

On the downside, initial support is near the 0.6510 level. The next support could be the 0.6500 level. If there is a downside break below 0.6500, the pair could extend its decline toward the 0.6450 region.  Any more losses might send the pair toward the 0.6420 support.

NZD/USD Technical Analysis

On the hourly chart of NZD/USD on FXOpen, the pair also followed a similar pattern and declined from the 0.6120 zone. The New Zealand Dollar gained bearish momentum and traded below 0.6080 against the US Dollar.

There was a break below a major rising channel with support near 0.6060 and the 50-hour simple moving average. Finally, the bulls appeared near the 0.6000 zone. A low is formed near 0.6002 and the pair is still showing a few bearish signs.

Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 0.6117 swing high to the 0.6002 low at 0.6030.

If there is a move above 0.6030, the pair could rise toward the 50-hour simple moving average at 0.6060. It is close to the 50% Fib retracement level of the downward move from the 0.6117 swing high to the 0.6002 low.

Any more gains might open the doors for a move toward the 0.6120 resistance zone in the coming days. On the downside, immediate support on the NZD/USD chart is near the 0.6000 level. The first major support is near the 0.5965 zone. If there is a downside break below 0.5965, the pair could extend its decline toward the 0.5920 level. The next key support is near 0.5850.