AUD/USD and NZD/USD Face Key Hurdles, Downtrend Intact
AUD/USD is facing a strong resistance near the 0.6660 zone. NZD/USD is also struggling to clear the 0.5900 resistance zone.
Important Takeaways for AUD/USD and NZD/USD
· The Aussie Dollar started a fresh decline from well above the 0.6700 zone against the US Dollar.
· There is a key bearish trend line forming with resistance near 0.6650 on the hourly chart of AUD/USD.
· NZD/USD started an upside correction from the 0.5800 support zone.
· There is a connecting bearish trend line forming with resistance near 0.5850 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
The Aussie Dollar failed to stay above the 0.6700 level and started a fresh decline against the US Dollar. The AUD/USD pair traded below the 0.6650 support zone to move into a bearish zone.
There was a clear move below the 0.6620 level and the 50 hourly simple moving average. The pair traded as low as 0.6575 on FXOpen and recently started an upside correction. There was a move above the 0.6620 level.
The bulls pushed the pair above the 38.2% Fib retracement level of the downward move from the 0.6747 swing high to 0.6575 swing low.
However, the bears remained active near the 0.6660 zone and the 50 hourly simple moving average. The pair failed to clear the 50% Fib retracement level of the downward move from the 0.6747 swing high to 0.6575 swing low.
There is also a key bearish trend line forming with resistance near 0.6650 on the hourly chart of AUD/USD. On the upside, the AUD/USD pair is facing resistance near the 0.6650 level.
The next major resistance is near the 0.6660 level. A close above the 0.6660 level could start a steady increase in the near term. The next major resistance could be 0.6720.
On the downside, an initial support is near the 0.6600 level. The next support could be the 0.6560 level. If there is a downside break below the 0.6560 support, the pair could extend its decline towards the 0.6500 level.
NZD/USD Technical Analysis
The New Zealand Dollar also followed a similar path against the US Dollar. The NZD/USD pair formed a base above the 0.5800 level and recently started an upside correction.
There was a clear move above the 0.5850 resistance and the 50 hourly simple moving average. The bulls pushed the pair above the 23.6% Fib retracement level of the downward move from the 0.6001 swing high to 0.5805 swing low.
However, bears were active near the 0.5880 level and the 50 hourly simple moving average. The pair faced sellers near the 38.2% Fib retracement level of the downward move from the 0.6001 swing high to 0.5805 swing low.
On the upside, an initial resistance is near the 0.5850 level. There is also a connecting bearish trend line forming with resistance near 0.5850 on the hourly chart of NZD/USD.
The next major resistance is near the 0.5880 level. A clear move above the 0.5880 level might even push the pair towards the 0.5950 level. If not, the pair might start a fresh decline below 0.5850. The next support could be the 0.5825 zone. If there is a downside break below the 0.5825 support, the pair could extend its decline towards the 0.5750 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.