AUD/USD and NZD/USD At Risk of Additional Losses

FXOpen

AUD/USD declined below the 0.7000 and 0.6950 support levels. NZD/USD also declined towards 0.6365 and is currently attempting a recovery wave.

Important Takeaways for AUD/USD and NZD/USD

· The Aussie Dollar started a fresh decline from well above the 0.7000 level against the US Dollar.

· There was a break below a key bullish trend line with support near 0.6960 on the hourly chart of AUD/USD.

· NZD/USD declined heavily below the 0.6450 support zone and tested 0.6365.

· There was a break below a major bullish trend line with support near 0.6405 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar started a fresh decline from the 0.7065 zone against the US Dollar. The AUD/USD pair remained in a bearish zone below the 0.7000 level.

There was a clear move below the 0.6950 support and the 50 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near 0.6960 on the hourly chart of AUD/USD.

AUD/USD Hourly Chart

The pair traded as low as 0.6871 FXOpen and is currently correcting higher. It surpassed the 23.6% Fib retracement level of the downward move from the 0.7063 swing high to 0.6871 low.

On the upside, the AUD/USD pair is facing resistance near the 0.6940 level and the 50 hourly simple moving average. The next major resistance is near the 0.6970 level. It is near the 50% Fib retracement level of the downward move from the 0.7063 swing high to 0.6871 low.

A close above the 0.6970 level could start another steady increase in the near term. The next major resistance could be 0.7040.

On the downside, an initial support is near the 0.6890 level. The next support could be the 0.6870 level. If there is a downside break below the 0.6870 support, the pair could extend its decline towards the 0.6820 level.  Any more losses might send the pair towards the 0.6750 support.

NZD/USD Technical Analysis

The New Zealand Dollar also followed a similar path from the 0.6530 support zone against the US Dollar. The NZD/USD pair started a steady decline below the 0.6500 and 0.6480 support levels.

The bears even pushed the pair below the 0.6400 level and the 50 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near 0.6405 on the hourly chart of NZD/USD.

NZD/USD Hourly Chart

The decline gained pace below the 0.6380 level. The pair traded as low as 0.6365 and is currently correcting higher. There was a move above the 0.6400 level.

The pair climbed above 23.6% Fib retracement level of the downward move from the 0.6530 swing high to 0.6365 low. On the upside, an initial resistance is near the 0.6430 level.

The next major resistance is near the 0.6450 level. The 50% Fib retracement level of the downward move from the 0.6530 swing high to 0.6365 low is also near 0.6450. A clear move above the 0.6450 level might even push the pair towards the 0.6500 level.

Any more gains might open the doors for a move towards the 0.6550 resistance zone in the coming days. An immediate support is near the 0.6395 level.

The first major support is near the 0.6365 zone. The next support could be the 0.6320 zone. If there is a downside break below the 0.6320 support, the pair could extend its decline towards the 0.6265 level.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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