AUD/USD and NZD/USD Signaling Downside Correction
AUD/USD gained momentum above the 0.7400 level before it faced sellers near 0.7445. NZD/USD is also correcting gains and it could test the 0.7020 support.
Important Takeaways for AUD/USD and NZD/USD
- The Aussie Dollar followed a bullish path above the 0.7350 and 0.7400 resistance levels against the US Dollar.
- There was a break above a key contracting triangle with resistance near 0.7385 on the hourly chart of AUD/USD.
- NZD/USD surged above 0.6950 and 0.7000, and even traded close to 0.7120.
- A major ascending channel is forming with support near 0.7055 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
In the past few days, the Aussie Dollar saw a steady increase above the 0.7320 pivot against the US Dollar. The AUD/USD pair even broke the 0.7400 resistance level to move into a positive zone.
During the increase, there was a break above a key contracting triangle with resistance near 0.7385 on the hourly chart of AUD/USD. The upward move gained pace above 0.7400 and the pair settled above the 50 hourly simple moving average.
It traded to a new monthly high at 0.7449 and recently started a downside correction. There was a break below the 0.7430 level. It is testing a key support zone near 0.7425, and the 23.6% Fib retracement level of the recent increase from the 0.7351 swing low to 0.7449 high.
If there are more losses and a downside break below 0.7425, the pair could extend losses towards the 0.7400 support. The 50 hourly simple moving average is also near the 0.7405 level to act as a support.
Moreover, the 50% Fib retracement level of the recent increase from the 0.7351 swing low to 0.7449 high is at 0.7400. Any more losses could lead the pair towards the 0.7350 support. Conversely, the pair could start a fresh increase above the 0.7440 level.
The first major resistance is near the 0.7450 level, above which AUD/USD could accelerate higher towards the 0.7500 level.
NZD/USD Technical Analysis
In the past few days, there was a major increase in the New Zealand Dollar above the 0.6950 resistance level against the US Dollar. The NZD/USD pair even surged above the 0.7000 resistance zone.
The pair climbed above the 0.7050 level and spiked above the 0.7100 level. A high is formed near 0.7104 and it is currently correcting lower. There was a break below the 0.7080 support level, and the pair broke the 50% Fib retracement level of the upward move from the 0.7031 swing low to 0.7104 high.
The pair is now trading below the 0.7070 level and the 50 hourly simple moving average. It is testing the 61.8% Fib retracement level of the upward move from the 0.7031 swing low to 0.7104 high.
There is also a major ascending channel is forming with support near 0.7055 on the hourly chart of NZD/USD. If there is a downside break below the channel support, there is a risk of more losses towards the 0.7040 and 0.7020 support levels.
Conversely, the pair could stay above the channel support and start a fresh increase above 0.7065. The first major resistance is near the 0.7080 level, above which the pair could make another attempt to settle above the 0.7100 level.
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