AUD/USD recovered recently, but it is facing hurdles near the 0.6750 resistance area. Similarly, NZD/USD must climb above the 0.6450 resistance area to continue higher.
Important Takeaways for AUD/USD and NZD/USD
- The Aussie Dollar recovered recently above the 0.6700 resistance area against the US Dollar.
- There is a major bearish trend line forming with resistance near 0.6740 on the hourly chart of AUD/USD.
- NZD/USD is correcting lower and it is now approaching the 0.6430 support area.
- There is a key contracting triangle forming with resistance near 0.6450 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
After a steady decline, the Aussie Dollar found support near the 0.6660 area against the US Dollar. The AUD/USD pair started an upside correction and traded above the 0.6700 resistance.
Moreover, there was a break below the 0.6720 area and the 50 hourly simple moving average. However, the pair struggled to gain momentum above the 0.6750 resistance and declined recently.
It traded as low as 0.6709 on FXOpen and it is currently moving higher. It surpassed the 50% Fib retracement level of the recent decline from the 0.6745 high to 0.6709 low.
At the moment, it is trading near the 0.6730 area and the 50 hourly simple moving average. Besides, the 61.8% Fib retracement level of the recent decline from the 0.6745 high to 0.6709 low is near the 0.6731 level.
More importantly, there is a major bearish trend line forming with resistance near 0.6740 on the hourly chart of AUD/USD. It seems like the pair is facing a strong resistance near the 0.6740 and 0.6750 levels.
Therefore, a clear break above the 0.6750 area could open the doors for a larger upward move. The next major hurdle is near the 0.6800 area.
If AUD/USD fails to climb above 0.6750, it could resume its decline. An initial support is near the 0.6710 area. The main support is at 0.6700, below which the bears are likely to take control in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar recovered nicely above the 0.6450 resistance area against the US Dollar. The NZD/USD even traded above 0.6480, but it failed to continue higher.
A swing high is formed near 0.6487 and the pair started a downside correction. It traded below the 0.6450 level and tested the 0.6430 area.
A swing low is formed near 0.6428 and the pair is currently consolidating above 0.6430. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the 0.6487 high to 0.6428 low.
Besides, there is a key contracting triangle forming with resistance near 0.6450 on the hourly chart of NZD/USD. Above the triangle, the 0.6455 is a key hurdle along with the 50 hourly simple moving average.
The 50% Fib retracement level of the recent decline from the 0.6487 high to 0.6428 low is also near the 0.6457 level to act as a resistance. Therefore, the pair must climb above 0.6450 and 0.6460 to start a decent upward move in the near term.
Conversely, the NZD/USD pair could decline below the 0.6420 support area and extend its losses in the near term. The next major support is near the 0.6400 area, below which the pair could retest 0.6375 support.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
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.