AUD/USD gained bearish momentum below the 0.7150 support zone. NZD/USD started a major decline after it faced sellers near 0.6565.
Important Takeaways for AUD/USD and NZD/USD
· The Aussie Dollar started a fresh decline after it struggled near 0.7265 against the US Dollar.
· There was a break below a major bullish trend line with support near 0.7160 on the hourly chart of AUD/USD.
· NZD/USD also started a major decline after it failed to stay above 0.6550.
· There was a move below a key bullish trend line with support near 0.6445 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
The Aussie Dollar faced a strong selling interest near the 0.7265 level against the US Dollar. The AUD/USD pair started a major decline below the 0.7200 level.
There was a clear move below the 0.7160 and 0.7150 support levels. Besides, there was a break below a major bullish trend line with support near 0.7160 on the hourly chart of AUD/USD. The pair declined below the 50% Fib retracement level of the upward move from the 0.7030 swing low to 0.7265 high (formed on FXOpen).
The pair even declined below the 0.7120 support level and the 50 hourly simple moving average. Finally, it tested the 76.4% Fib retracement level of the upward move from the 0.7030 swing low to 0.7265 high.
On the upside, the AUD/USD pair is facing resistance near the 0.7120 level. The next major resistance is near the 0.7150 level. A close above the 0.7150 level and the 50 hourly simple moving average could start a steady increase in the near term.
The next major resistance could be 0.7200. On the downside, an initial support is near the 0.7085 level. The next support could be the 0.7050 level.
If there is a downside break below the 0.7050 support, the pair could extend its decline towards the 0.7000 level. Any more downsides might send the pair toward the 0.6920 level.
NZD/USD Technical Analysis
The New Zealand Dollar also followed a similar path from the 0.6565 zone against the US Dollar. The NZD/USD pair gained pace below the 0.6500 support zone.
The pair traded below the 0.6480 and 0.6450 support levels. Besides, there was a move below a key bullish trend line with support near 0.6445 on the hourly chart of NZD/USD. The pair even broke the 0.6400 level and traded as low as 0.6392.
On the upside, an initial resistance is near the 0.6435 level. It is near the 23.6% Fib retracement level of the recent drop from the 0.6568 swing high to 0.6392 low.
The next major resistance is near the 0.6480 level or the 50 hourly simple moving average. It is near the 50% Fib retracement level of the recent drop from the 0.6568 swing high to 0.6392 low. A clear move above the 0.6480 level might even push the pair towards the 0.6420 level.
On the downside, an initial support is near the 0.6400 level. The next support could be the 0.6380 zone. If there is a downside break below the 0.6380 support, the pair could extend its decline towards the 0.6300 level.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.
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