Market Analysis: AUD/USD and NZD/USD Trim Gains, Are Bears Back?
AUD/USD declined below the 0.6720 and 0.6700 support levels. NZD/USD is also moving lower and might struggle to recover above 0.6200.
Important Takeaways for AUD/USD and NZD/USD Analysis Today
· The Aussie Dollar started a fresh decline from well above the 0.6700 level against the US Dollar.
· There is a connecting bearish trend line forming with resistance at 0.6660 on the hourly chart of AUD/USD at FXOpen.
· NZD/USD declined steadily from the 0.6255 resistance zone.
· There is a key bearish trend line forming with resistance at 0.6155 on the hourly chart of NZD/USD at FXOpen.
AUD/USD Technical Analysis
On the hourly chart of AUD/USD at FXOpen, the pair struggled to clear the 0.6765 zone. The Aussie Dollar started a fresh decline below the 0.6720 support against the US Dollar.
The pair even settled below 0.6700 and the 50-hour simple moving average. There was a clear move below 0.6670. A low was formed at 0.6640 and the pair is now consolidating losses. On the upside, an immediate resistance is near the 0.6660 level.
There is also a connecting bearish trend line with resistance at 0.6660. The next major resistance is near the 23.6% Fib retracement level of the downward move from the 0.6767 swing high to the 0.6641 low at 0.6670, above which the price could rise toward 0.6700.
Any more gains might send the pair toward the 61.8% Fib retracement level of the downward move from the 0.6767 swing high to the 0.6641 low at 0.6720. A close above the 0.6720 level could start another steady increase in the near term.
The next major resistance on the AUD/USD chart could be 0.6765. On the downside, initial support is near the 0.6640 zone. The next support sits at 0.6620. If there is a downside break below 0.6620, the pair could extend its decline. The next support could be 0.6550. Any more losses might send the pair toward the 0.6500 support.
NZD/USD Technical Analysis
On the hourly chart of NZD/USD on FXOpen, the pair also followed a similar pattern and declined from the 0.6255 zone. The New Zealand Dollar gained bearish momentum and traded below 0.6205 against the US Dollar.
The pair settled below the 0.6190 level and the 50-hour simple moving average. Finally, it tested the 0.6125 zone and is currently attempting a minor recovery wave. There was a move above the 23.6% Fib retracement level of the downward move from the 0.6254 swing high to the 0.6124 low.
Immediate resistance on the upside is near 0.6150. There is also a key bearish trend line forming with resistance at 0.6155 and the 23.6% Fib retracement level of the downward move from the 0.6254 swing high to the 0.6124 low.
The next resistance is the 50% Fib retracement level of the downward move from the 0.6254 swing high to the 0.6124 low at 0.6190. If there is a move above 0.6190, the pair could rise toward 0.6240.
Any more gains might open the doors for a move toward the 0.6280 resistance zone in the coming days. On the downside, immediate support on the NZD/USD chart is near the 0.6125 level.
The next major support is near the 0.6080 zone. If there is a downside break below 0.6080, the pair could extend its decline toward the 0.6050 level. The next key support is near 0.6000.
Read more: https://fxopen.com/blog/en/aj-market-analysis-aud-usd-nzd-usd-trim-gains-are-bears-back/
Text source: Forex Trading Blog
