AUD/USD declined heavily and traded below the key 0.6400 support area. Similarly, NZD/USD declined below 0.6200 and it is currently correcting higher.
Important Takeaways for AUD/USD and NZD/USD
- The Aussie Dollar is currently correcting higher from the 0.6212 low against the US Dollar.
- There is a major bearish trend line forming with resistance near 0.6360 on the hourly chart of AUD/USD.
- NZD/USD is facing an increase in selling pressure below 0.6200 and 0.6150.
- There is a key bearish trend line forming with resistance near 0.6195 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
This past week, the Aussie Dollar topped near the 0.6680 resistance area against the US Dollar. The AUD/USD pair started a fresh decline below the 0.6500 and 0.6400 support levels.
Moreover, there was a close below the 0.6400 support and the 50 hourly simple moving average. It opened the doors for more losses below the 0.6300 level and the pair traded as low as 0.6212 on FXOpen.
It is currently correcting higher and trading above the 0.6250 level. It tested the 23.6% Fib retracement level of the recent drop from the 0.6539 high to 0.6212 low.
On the upside, an initial resistance is near the 0.6320 level. The first major resistance is near the 0.6375 level. There is also a major bearish trend line forming with resistance near 0.6360 on the hourly chart of AUD/USD.
The 50% Fib retracement level of the recent drop from the 0.6539 high to 0.6212 low is also near the 0.6375 level to act as a key hurdle for the bulls.
Therefore, the AUD/USD pair might face a lot of hurdles if it recovers towards the 0.6360 and 0.6375 levels. A successful close above 0.6375 is needed to start a decent increase towards the 0.6500 level.
If AUD/USD fails to recover above 0.6320 or 0.6360, there are chances of more downsides. An initial support is near the 0.6250 level, below which the bears are likely to aim a test of the 0.6200 level.
NZD/USD Technical Analysis
The New Zealand Dollar also followed a similar pattern and declined sharply below 0.6250 against the US Dollar. The NZD/USD even broke many supports near 0.6200 to enter a bearish zone.
The decline was such that the pair even traded below the 0.6150 level and settled well below the 50 hourly simple moving average. It traded as low as 0.6085 and it is currently correcting higher.
The pair recovered above 0.6120 and it is testing the 23.6% Fib retracement level of the recent decline from the 0.6341 high to 0.6085 low. On the upside, an initial resistance is near the 0.6180 level.
The first major resistance is near the 0.6200 level (the recent breakdown zone). Moreover, there is a key bearish trend line forming with resistance near 0.6195 on the hourly chart of NZD/USD.
The trend line is close to the 50% Fib retracement level of the recent decline from the 0.6341 high to 0.6085 low. Therefore, the pair must climb above the 0.6180 and 0.6200 resistance levels to move into a positive zone.
Conversely, the NZD/USD pair might fail to continue above 0.6200 and it could resume its decline below the 0.6120 and 0.6100 support levels in the near term.
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