Market Analysis: AUD/USD and NZD/USD Under Pressure, Downtrend Persists
AUD/USD declined below the 0.6500 and 0.6455 support levels. NZD/USD is also moving lower and might struggle to recover above 0.5900.
Important Takeaways for AUD/USD and NZD/USD Analysis Today
· The Aussie Dollar started a fresh decline from well above the 0.6500 level against the US Dollar.
· There is a connecting bearish trend line forming with resistance at 0.6465 on the hourly chart of AUD/USD at FXOpen.
· NZD/USD declined steadily from the 0.5930 resistance zone.
· There was a break below a short-term contracting triangle with support at 0.5865 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 0.6530 zone. The Aussie Dollar started a fresh decline below the 0.6500 support against the US Dollar.
The pair even settled below 0.6455 and the 50-hour simple moving average. There was a clear move below 0.6430. A low was formed at 0.6407 and the pair is now consolidating losses. On the upside, an immediate resistance is near the 0.6430 level.
The 23.6% Fib retracement level of the downward move from the 0.6504 swing high to the 0.6407 low is also near 0.6430. The next major resistance is near a connecting bearish trend line at 0.6465.
The trend line is near the 61.8% Fib retracement level of the downward move from the 0.6504 swing high to the 0.6407 low, above which the price could rise toward 0.6500.
Any more gains might send the pair toward the 0.6530 resistance. A close above the 0.6530 level could start another steady increase in the near term. The next major resistance on the AUD/USD chart could be 0.6620.
On the downside, initial support is near the 0.6405 zone. The next support sits at 0.6380. If there is a downside break below 0.6380, the pair could extend its decline. The next support could be 0.6350. Any more losses might send the pair toward the 0.6320 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 0.5930 zone. The New Zealand Dollar gained bearish momentum and traded below 0.5900 against the US Dollar.
The pair settled below the 0.5880 level and the 50-hour simple moving average. Besides, there was a break below a short-term contracting triangle with support at 0.5865.
Finally, it tested the 0.5830 zone and is currently consolidating losses. Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 0.5904 swing high to the 0.5831 low at 0.5840.
The next resistance is the 0.5865 level or the 50% Fib retracement level of the downward move from the 0.5904 swing high to the 0.5831 low. If there is a move above 0.5865, the pair could rise toward 0.5905.
Any more gains might open the doors for a move toward the 0.5930 resistance zone in the coming days. On the downside, immediate support on the NZD/USD chart is near the 0.5830 level.
The next major support is near the 0.5800 zone. If there is a downside break below 0.5800, the pair could extend its decline toward the 0.5765 level. The next key support is near 0.5740.
Read more: https://fxopen.com/blog/en/aj-market-analysis-aud-usd-and-nzd-usd-under-pressure-downtrend-persists/
Text source: Forex Trading Blog
