AUD/USD and NZD/USD Gain Bearish Momentum Below Support
AUD/USD is moving lower and approaching the 0.6220 support. NZD/USD is also declining and showing bearish signs below 0.5600.
Important Takeaways for AUD/USD and NZD/USD
· The Aussie Dollar started a fresh decline from well above the 0.6320 zone against the US Dollar.
· There was a break below a connecting bullish trend line with support at 0.6265 on the hourly chart of AUD/USD.
· NZD/USD is gaining bearish momentum below the 0.5600 support zone.
· There was a break below a key bullish trend line with support at 0.5595 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
The Aussie Dollar failed to stay above the 0.6400 level and started a fresh decline against the US Dollar. The AUD/USD pair traded below the 0.6350 support zone to move into a bearish zone.
There was a clear move below the 0.6300 level and the 50 hourly simple moving average. During the decline, there was a break below a connecting bullish trend line with support at 0.6265 on the hourly chart of AUD/USD.
The pair traded as low as 0.6240 on FXOpen and is currently showing a lot of bearish signs. On the upside, the AUD/USD pair is facing resistance near the 0.6265 level. It is near the 23.6% Fib retracement level of the recent decline from the 0.6346 swing high to 0.62405 swing low.
The next major resistance is near the 0.6290 level and the 50 hourly simple moving average. It coincides with the 50% Fib retracement level of the recent decline from the 0.6346 swing high to 0.62405 swing low.
A close above the 0.6300 level could start a steady increase in the near term. The next major resistance could be 0.6350.
On the downside, an initial support is near the 0.6240 level. The next support could be the 0.6220 level. If there is a downside break below the 0.6220 support, the pair could extend its decline towards the 0.6165 level.
NZD/USD Technical Analysis
The New Zealand Dollar also followed a similar path from the 0.5660 resistance zone against the US Dollar. The NZD/USD pair started a steady decline below the 0.5620 and 0.5600 support levels.
There was a clear move below the 50% Fib retracement level of the recovery wave from the 0.5535 swing low to 0.5657 high.
Besides, there was a break below a key bullish trend line with support at 0.5595 on the hourly chart of NZD/USD. The pair is now trading below the 0.5600 level and the 50 hourly simple moving average.
It is approaching the 76.4% Fib retracement level of the recovery wave from the 0.5535 swing low to 0.5657 high. The next support could be the 0.5535 zone. If there is a downside break below the 0.5535 support, the pair could extend its decline towards the 0.5500 level.
On the upside, an initial resistance is near the 0.5585 level. The next major resistance is near the 0.5600 level. A clear move above the 0.5600 level might even push the pair towards the 0.5650 level. Any more gains might open the doors for a move towards the 0.5700 resistance zone in the coming days.
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.