AUD/USD found a strong support near 0.7040 and recovered. Similarly, NZD/USD climbed higher recently and broke the 0.6600 resistance area to move into a bullish zone.
Important Takeaways for AUD/USD and NZD/USD
- The Aussie Dollar found a strong buying interest near the 0.7040-0.7060 area against the US Dollar.
- There was a break above a major bearish trend line with resistance at 0.7180 on the daily chart of AUD/USD.
- NZD/USD also formed a crucial bottom near the 0.6420 level and recovered higher.
- There was a break above a key bearish trend line with resistance at 0.6550 on the daily chart.
AUD/USD Technical Analysis
After a major decline in the past few weeks, the Aussie Dollar finally found a strong support near the 0.7040 level against the US Dollar. The AUD/USD pair started a major upward move and climbed above the 0.7100 and 0.7200 resistance levels.
During the rise, the pair also broke the 50% Fibonacci retracement level of the last slide from the 0.7451 high to 0.7020 swing low. Besides, there was a close above the 0.7200 barrier and the 50-day simple moving average.
More importantly, there was a break above a major bearish trend line with resistance at 0.7180 on the daily chart. The pair even broke the 0.7300 resistance and traded towards the 0.7330 level.
The pair failed to break the 76.4% Fibonacci retracement level of the last slide from the 0.7451 high to 0.7020 swing low and later corrected lower.
However, the recent break above the 0.7250 level and the trend line suggests that the pair moved into a positive zone. Therefore, there are chances of more gains in the near term towards the 0.7400 level. If buyers remain in action, the pair could even test the 0.7530 level, which is near the 1.236 Fib extension level of the last slide from the 0.7451 high to 0.7020 swing low.
On the downside, the key supports are 0.7200 and 0.7180, below which the pair may decline back towards the 0.7100 level.
NZD/USD Technical Analysis
The New Zealand Dollar also gained traction recently after it formed a decent support at 0.6430 against the US Dollar. The NZD/USD pair traded higher and broke the 0.6500 and 0.6600 resistance levels to enter a positive zone.
During the rise, the pair cleared many hurdles near the 0.6600 level and the 0.6650 pivot zone. Moreover, there was a break above a key bearish trend line with resistance at 0.6550 on the daily chart.
The pair settled above the 0.6700 resistance and the 50-day simple moving average. A new monthly high was formed at 0.6883 on FXOpen and the pair is currently consolidating gains.
An initial support is near the 0.6700 level and the 38.2% Fib retracement level of the recent upside move from the 0.6427 low to 0.6883 high. Below the 0.6700 support, the pair could test the key 0.6650 support.
The 0.6650 support also coincides with the 50% Fib retracement level of the recent upside move from the 0.6427 low to 0.6883 high. Therefore, dips from the current levels in the medium term remains supported near 0.6700 and 0.6650 levels.
On the upside, a break above the recent high at 0.6883 could spark more gains in NZD/USD above the 0.6850 level. The next major for buyers is at 0.7000, above which the pair could rise to 0.7200.
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