AUD/USD and NZD/USD Primed for More Gains

FXOpen

AUD/USD remained supported above the 0.7350 level and is currently trading higher. Similarly, NZD/USD is placed nicely in an uptrend and it could accelerate gains towards 0.6820.

Important Takeaways for AUD/USD and NZD/USD

  • The Aussie Dollar remained in a bullish zone with supports near 0.7350 and 0.7370 against the US Dollar.
  • There is a contracting triangle formed with resistance near 0.7395 on the hourly chart of AUD/USD.
  • NZD/USD is following a major bullish trend line with current support at 0.6785 on the hourly chart.
  • Today’s US NFP release for June 2018 could be a game changer for both AUD/USD and NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar formed a solid support above the 0.7300 level and recovered against the US Dollar. The AUD/USD pair climbed above the 0.7350 and 0.7370 resistance levels to move into a bullish zone.

An intermediate low was formed at 0.7361 and the pair is currently attempting an upside break above 0.7400. It is trading above the 38.2% Fib retracement level of the last decline from the 0.7424 high to 0.7361 low.

AUD/USD Technical Analysis Chart

More importantly, there is a contracting triangle formed with resistance near 0.7395 on the same chart. A break above the contracting triangle could open the doors for more gains in the near term.

The next resistance is at 0.7410, which acted as a barrier earlier as well and is currently coincides with the 76.4% Fib retracement level of the last decline from the 0.7424 high to 0.7361 low.

Should there be more gains above 0.7410, the pair will most likely accelerate higher towards the 0.7450 level. On the flip side, if there is a downside break below the triangle support at 0.7380, the pair may perhaps revisit the 0.7360 swing low.  Below 0.7360, the pair might move into a bearish zone towards the 0.7320 level.

NZD/USD Technical Analysis

The New Zealand Dollar started a solid uptrend after it formed a support base near 0.6700 against the US Dollar. The NZD/USD pair traded above the 0.6720 and 0.6750 resistance levels to place itself in a buy zone.

It is currently trading well above the last swing high at 0.6780, the 50 hourly simple moving average, and the 0.6770 pivot level. An immediate resistance is near 0.6810, which is the 1.236 Fib extension level of the last decline from the 0.6789 high to 0.6687 low.

NZD/USD Technical Analysis Chart

A break and close above the 0.6800-10 resistance area could push the pair towards the 0.6850 resistance. On the downside, there is a key bullish trend line in place with current support at 0.6785 on the hourly chart.

Should the pair break the trend line support, it may test the 50 hourly SMA at 0.6770. Below this, there is a risk of more declines towards the 0.6750 support.

Fundamentally, there is a high risk even scheduled in the US today, as the Nonfarm payrolls report for June 2018 will be released. The forecast is slated for 195K, down from the last 223K. If the actual exceeds the forecast, there could be a downside correction in AUD/USD and NZD/USD.

On the other hand, if the actual figure is below 150K, the US Dollar may face selling pressure in the short term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

GOOGL Shares Decline After Report
Shares

GOOGL Shares Decline After Earnings Report

Yesterday, Alphabet released its Q2 report:

→ Earnings per share: actual = $1.89, forecast = $1.847;

→ Gross revenue: actual = $84.742 billion, forecast = $84.208 billion.

The actual figures exceeded analysts' expectations. However, today in pre-market trading, GOOGL's price fluctuates around

Brent Crude Oil Price Is Declining Amid De-Escalation in the Middle East
Commodities

Brent Crude Oil Price Is Declining Amid De-Escalation in the Middle East

On 8th July, we noted that oil prices were forming a large narrowing triangle, originating from 2022-2023, with its upper boundary being a significant resistance point.

As shown on the Brent oil price chart (XBR/USD), bulls have since failed

How Will the BoC's Decision Affect the Currency Market?
Forex Analysis

How Will the BoC's Decision Affect the Currency Market?

The USD/CAD pair has been strengthening for the third consecutive week and is currently approaching the upper boundary of the three-month range of 1.3850-1.3600. The strength of the pair's buyers is quite significant, which could lead to

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.