AUD/USD and NZD/USD Could Struggle To Recover Losses

AUD/USD declined below the 0.6750 and 0.6720 support levels. NZD/USD also declined towards 0.6230 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 0.6800 level against the US Dollar.

· There was a break below a connecting bullish trend line with support near 0.6720 on the hourly chart of AUD/USD.

· NZD/USD declined heavily below the 0.6350 support zone and tested 0.6230.

· There is a major bearish trend line forming with resistance near 0.6295 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar started a fresh decline from the 0.6800 zone against the US Dollar. The AUD/USD pair remained in a bearish zone below the 0.6750 level.

There was a clear move below the 0.6720 support and the 50 hourly simple moving average. Besides, there was a break below a connecting bullish trend line with support near 0.6720 on the hourly chart of AUD/USD.

The pair traded as low as 0.6650 FXOpen and is currently correcting higher. It surpassed the 23.6% Fib retracement level of the downward move from the 0.6767 swing high to 0.6650 low.

On the upside, the AUD/USD pair is facing resistance near the 0.6700 level and the 50 hourly simple moving average. The next major resistance is near the 0.6710 level. It is near the 50% Fib retracement level of the downward move from the 0.6767 swing high to 0.6650 low.

A close above the 0.6710 level could start another steady increase in the near term. The next major resistance could be 0.6765.

On the downside, an initial support is near the 0.6650 level. The next support could be the 0.6620 level. If there is a downside break below the 0.6620 support, the pair could extend its decline towards the 0.6580 level.  Any more losses might send the pair towards the 0.6550 support.

NZD/USD Technical Analysis

The New Zealand Dollar also followed a similar path from the 0.6450 support zone against the US Dollar. The NZD/USD pair started a steady decline below the 0.6400 and 0.6380 support levels.

The bears even pushed the pair below the 0.6300 level and the 50 hourly simple moving average. The decline gained pace below the 0.6280 level. The pair traded as low as 0.6230 and is currently correcting higher.

There was a move above the 0.6255 level. The pair climbed above 38.2% Fib retracement level of the downward move from the 0.6330 swing high to 0.6230 low.

On the upside, an initial resistance is near the 0.6280 level. The 50% Fib retracement level of the downward move from the 0.6330 swing high to 0.6230 low is also near 0.6280. The next major resistance is near the 0.6290 level.

There is also a major bearish trend line forming with resistance near 0.6295 on the hourly chart of NZD/USD. A clear move above the 0.6300 level might even push the pair towards the 0.6340 level.

Any more gains might open the doors for a move towards the 0.6380 resistance zone in the coming days. An immediate support is near the 0.6250 level. The first major support is near the 0.6230 zone. The next support could be the 0.6200 zone. If there is a downside break below the 0.6200 support, the pair could extend its decline towards the 0.6165 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.