AUD/USD and NZD/USD Start Recovery, Key Hurdles Intact
AUD/USD is gaining pace above the 0.6800 resistance. NZD/USD is rising, but it might face resistance near the 0.6130 and 0.6140 levels.
Important Takeaways for AUD/USD and NZD/USD
· The Aussie Dollar started a fresh recovery wave above the 0.6750 resistance zone against the US Dollar.
· There was a break above a key bearish trend line with resistance near 0.6788 on the hourly chart of AUD/USD.
· NZD/USD started an upside correction from the 0.5965 support zone.
· There is a connecting bearish trend line forming with resistance near 0.6105 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
The Aussie Dollar formed a base above the 0.6695 and 0.6700 levels against the US Dollar. The AUD/USD pair started a steady recovery wave after it cleared the 0.6750 resistance zone.
There was a clear move above the 0.6780 resistance and the 50 hourly simple moving average. The bulls pushed the pair above the 50% Fib retracement level of the downward move from the 0.6832 swing high to 0.6699 swing low (formed on FXOpen).
Besides, there was a break above a key bearish trend line with resistance near 0.6788 on the hourly chart of AUD/USD. The pair is now trading above the 76.4% Fib retracement level of the downward move from the 0.6832 swing high to 0.6699 swing low.
It is also well above the 0.6800 level and the 50 hourly simple moving average. On the upside, the AUD/USD pair is facing resistance near the 0.6830 level.
The next major resistance is near the 0.6865 level. A close above the 0.6865 level could start a steady increase in the near term. The next major resistance could be 0.6950.
On the downside, an initial support is near the 0.6800 level. The next support could be the 0.6780 level. If there is a downside break below the 0.6780 support, the pair could extend its decline towards the 0.6750 level.
NZD/USD Technical Analysis
The New Zealand Dollar also followed a similar path against the US Dollar. The NZD/USD pair formed a base above the 0.6000 level and recently started an upside correction.
There was a clear move above the 0.6050 resistance and the 50 hourly simple moving average. The bulls pushed the pair above the 50% Fib retracement level of the downward move from the 0.6129 swing high to 0.5996 swing low.
It is now trading above the 0.6080 level and testing a connecting bearish trend line forming with resistance near 0.6105 on the hourly chart of NZD/USD.
The current price action is positive above the 76.4% Fib retracement level of the downward move from the 0.6129 swing high to 0.5996 swing low. On the upside, an initial resistance is near the 0.6110 level. The next major resistance is near the 0.6130 level.
A clear move above the 0.6130 level might even push the pair towards the 0.6180 level. If not, the pair might start a fresh decline below 0.6080. The next support could be the 0.6050 zone. If there is a downside break below the 0.6050 support, the pair could extend its decline towards the 0.6000 level.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.