Market Analysis: AUD/USD and NZD/USD Hold StrongAre More Gains Ahead?
AUD/USD is attempting a fresh increase from the 0.6350 support. NZD/USD is also rising and could aim for a move above the 0.5800 resistance.
Important Takeaways for AUD/USD and NZD/USD Analysis Today
· The Aussie Dollar found support at 0.6300 and recovered higher against the US Dollar.
· There is a connecting bullish trend line forming with support at 0.6365 on the hourly chart of AUD/USD at FXOpen.
· NZD/USD is consolidating above the 0.5720 support.
· There is a key bullish trend line forming with support at 0.5735 on the hourly chart of NZD/USD at FXOpen.
AUD/USD Technical Analysis
On the hourly chart of AUD/USD at FXOpen, the pair formed a base above 0.6300. The Aussie Dollar started a decent increase above the 0.6350 resistance against the US Dollar, as mentioned in the previous analysis.
The pair even cleared 0.6400 before there was a minor pullback. The recent low was formed at 0.6351 and the pair is again rising. The bulls pushed the pair above the 50% Fib retracement level of the downward move from the 0.6408 swing high to the 0.6351 low.
However, the pair is still below the 50-hour simple moving average. On the upside, the AUD/USD chart indicates that the pair is now facing resistance near the 0.6385 zone. It is close to the 61.8% Fib retracement level of the downward move from the 0.6408 swing high to the 0.6351 low.
The first major resistance might be 0.6395. An upside break above the 0.6395 resistance might send the pair further higher. The next major resistance is near the 0.6410 level. Any more gains could clear the path for a move toward the 0.6450 resistance zone.
If not, the pair might correct lower. Immediate support sits near the 0.6365 level. There is also a connecting bullish trend line forming with support at 0.6365.
The next support could be 0.6350. If there is a downside break below the 0.6350 support, the pair could extend its decline toward the 0.6330 zone. Any more losses might signal a move toward 0.6300.
NZD/USD Technical Analysis
On the hourly chart of NZD/USD on FXOpen, the pair also followed AUD/USD. The New Zealand Dollar formed a base above the 0.5675 level and started a decent increase against the US Dollar.
The pair climbed above the 0.5720 resistance. It tested the 0.5775 resistance before there was a pullback. The recent low was formed at 0.5734 and the pair is again rising above the 50-hour simple moving average.
It cleared the 0.5750 resistance and the 50% Fib retracement level of the downward move from the 0.5772 swing high to the 0.5734 low. The NZD/USD chart suggests that the RSI is back above 50 signaling a positive bias.
On the upside, the pair is facing resistance near the 76.4% Fib retracement level of the downward move from the 0.5772 swing high to the 0.5734 low at 0.5762. The next major resistance is near the 0.5775 level.
A clear move above the 0.5775 level might even push the pair toward the 0.5800 level. Any more gains might clear the path for a move toward the 0.5880 resistance zone in the coming days.
On the downside, there is a support forming near the 0.5750 zone. If there is a downside break below the 0.5750 support, the pair might slide toward 0.5735. There is also a key bullish trend line forming with support at 0.5735. Any more losses could lead NZD/USD in a bearish zone to 0.5695.
Read more: https://fxopen.com/blog/en/aj-market-analysis-aud-usd-and-nzd-usd-hold-strong-are-more-gains-ahead/
Text source: Forex Trading Blog
