AUD/USD started a strong decline from well above the 0.7350 support zone. Similarly, NZD/USD is showing bearish signs and it could decline towards 0.6650.
Important Takeaways for AUD/USD and NZD/USD
- The Aussie Dollar started major downward move below 0.7350 against the US Dollar.
- There is a crucial declining channel in place with resistance near 0.7280 on the hourly chart of AUD/USD.
- NZD/USD broke the 0.6720 support level to move into a short-term bearish zone.
- There was a break below a key bullish trend line with support near 0.6755 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
The Aussie Dollar started a major decline from the 0.7415 swing high against the US Dollar. The AUD/USD pair broke the 0.7350 support zone to move into a bearish zone.
The pair gained bearish momentum below the 0.7320 support level and the 50 hourly simple moving average. There was a break below the 50% Fib retracement level of the upward move from the 0.7150 swing low to 0.7415 high (formed on FXOpen).
The pair is now trading below the 0.7280 support and testing the 61.8% Fib retracement level of the upward move from the 0.7150 swing low to 0.7415 high.
It seems like there is a crucial declining channel in place with resistance near 0.7280 on the hourly chart of AUD/USD. The first key support is near the 0.7250 level. If there is a downside break below the 0.7250 support, the pair could continue to move down towards the 0.7210 support.
Any further losses may lead the pair towards the 0.7200 support level. Conversely, the pair could break the 0.7280 resistance and the channel trend line to start a fresh increase above 0.7300.
The next resistance could be 0.7320, above which AUD/USD might test 0.7350. A clear break above 0.7350 could lead the pair towards the 0.7400 level in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar was relatively stable above the 0.6650 support zone against the US Dollar. Earlier, the NZD/USD pair traded higher and tested the 0.6785 resistance zone.
A high was formed near 0.6788 before the pair started a downside correction. It traded below the 0.6750 support and the 50 hourly simple moving average to move into a short-term bearish zone.
There was also a break below a key bullish trend line with support near 0.6755 on the hourly chart of NZD/USD. The pair tested the 50% Fib retracement level of the upward move from the 0.6598 swing low to 0.6788 high.
It seems like the pair might continue to move down below 0.6690. The next key support is near the 0.6640 level. It is close to the 76.4% Fib retracement level of the upward move from the 0.6598 swing low to 0.6788 high.
Any further losses may perhaps lead the pair towards the 0.6600 support level in the near term. On the upside, the previous support near 0.6720 is likely to act as a strong resistance.
The main resistance is near the 50 hourly SMA at 0.6740, above which NZD/USD might start a steady increase. In the stated case, the pair is likely to break the 0.6788 high and it could even surpass the 0.6800 resistance in the coming days.
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