AUD/USD and NZD/USD Could Extend Losses

AUD/USD started a fresh decline from well above 0.7250. NZD/USD is also declining and there is a risk of a move below the 0.6730 support.

Important Takeaways for AUD/USD and NZD/USD

· The Aussie Dollar started a major decline from well above the 0.7250 level against the US Dollar.

· There is a short-term breakout pattern forming with resistance near 0.7175 on the hourly chart of AUD/USD.

· NZD/USD also declined sharply below the 0.6800 support zone.

· There is a contracting triangle forming with resistance near 0.6755 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar struggled to clear the 0.7270 level against the US Dollar. The AUD/USD pair started a fresh decline below the 0.7250 support level.

The pair even traded below the 0.7220 support level and the 50 hourly simple moving average. It traded as low as 0.7146 on FXOpen and started consolidation. There was a minor move above the 0.7155 level.

However, the pair is facing resistance near the 0.7175 level. There is also a short-term breakout pattern forming with resistance near 0.7175 on the hourly chart of AUD/USD. The triangle resistance is near the 23.6% Fib retracement level of the downward move from the 0.7272 swing high to 0.7146 low.

The next major resistance is near the 0.7210 level. It is near the 50% Fib retracement level of the downward move from the 0.7272 swing high to 0.7146 low.

A close above the 0.7210 level could start a steady increase in the near term. The next major resistance could be 0.7250. On the downside, an initial support is near the 0.7150 level. If there is a downside break below the 0.71350 support, the pair could extend its decline towards the 0.7120 level. Any more downsides might send the pair toward the 0.7100 level.

NZD/USD Technical Analysis

The New Zealand Dollar also followed a similar path from the 0.6835 zone against the US Dollar. The NZD/USD pair traded below the 0.6800 support zone to enter a bearish zone.

The pair even traded below the 0.6770 level and the 50 hourly simple moving average. A low was formed near 0.6730 and the pair is now consolidating losses. There was a minor move above the 0.6740 level.

However, the pair is facing resistance near the 0.6755 level. There is also a contracting triangle forming with resistance near 0.6755 on the hourly chart of NZD/USD. The triangle resistance is near the 23.6% Fib retracement level of the downward move from the 0.6834 swing high to 0.6730 low.

The next major resistance is near the 0.6780 level. It is near the 50% Fib retracement level of the downward move from the 0.6834 swing high to 0.6730 low.

A clear move above the 0.6780 level might even push the pair above the 0.6800 level. On the downside, an initial support is near the 0.6735 level.

The first key support is near the 0.6730 level, below which the pair could extend losses. The next major support is near the 0.6700 level. If there is a downside break below the 0.6700 support, the pair could extend its decline towards the 0.6660 level.

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