AUD/USD faces strong resistance near the 0.6660 zone. NZD/USD is also struggling to clear the 0.5900 resistance zone.
Important takeaways for AUD/USD and NZD/USD
· The Australian dollar started a new decline well above the 0.6700 zone against the US dollar.
· A key bearish trend line is forming with resistance near 0.6650 on the AUD/USD hourly chart.
· NZD/USD started an upward correction from the 0.5800 support zone.
· A bearish trendline is forming with resistance near 0.5850 on the NZD/USD hourly chart.
AUD/USD Technical Analysis
The Australian dollar failed to hold above the 0.6700 level and started a new decline against the US dollar. The AUD/USD the pair is trading below the 0.6650 support zone to move into the bearish zone.
A move below the 0.6620 level and the 50-hour SMA was evident. On the FXOpen, the pair traded up to 0.6575 and recently started an upward correction. There was a move above the 0.6620 level.
Bulls pushed the pair above the 38.2% Fib retracement level on the downside from the 0.6747 swing high to the 0.6575 swing low.
However, bears remained active near the 0.6660 area and the 50-hour simple moving average. The pair failed to break the 50% Fib retracement level from the downward move from the 0.6747 swing high to the 0.6575 swing low.
There is also a key bearish trend line with resistance near 0.6650 on the AUD/USD hourly chart. On the upside, the AUD/USD pair faces resistance near the 0.6650 level.
The next major resistance is near the 0.6660 level. A close above the 0.6660 level could start a steady uptrend in the near term. The next major resistance could be 0.6720.
On the other hand, the initial support is around the 0.6600 level. The next support could be the level of 0.6560. If there is a break below the 0.6560 support level, the pair could extend its decline towards the 0.6500 level.
NZD/USD Technical Analysis
The New Zealand dollar also followed a similar path against the US dollar. The NZD/USD the pair formed a base above the 0.5800 level and recently started an upward correction.
There was a clear move above the 0.5850 resistance and the 50-hour SMA. Bulls pushed the pair above the 23.6% Fib retracement level on the downside from the 0.6001 high to the 0.5805 low.
However, bears were active near the 0.5880 level and the 50-hour simple moving average. The pair faced sellers near the 38.2% Fib retracement level on the downside from the 0.6001 swing high to the 0.5805 swing low.
On the upside, initial resistance is near the 0.5850 level. There is also a bearish trendline with resistance near 0.5850 on the NZD/USD hourly chart.
The next major resistance is near the 0.5880 level. An apparent move above the 0.5880 level could even push the pair towards the 0.5950 level. Otherwise, the pair may start a new decline below 0.5850. The next support could be the 0.5825 zone. If there is a break below the 0.5825 support level, the pair could extend its decline to the 0.5750 level.
This forecast represents only the opinion of FXOpen Markets Limited and should not be construed as an offer, solicitation or recommendation regarding FXOpen Markets Limited’s products and services or as financial advice.
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