Both the AUDUSD and the NZDUSD are trading lower and in the process testing key support targets. The video above goes through the technicals driving the pairs. Below are the key technical points outlined in the video for each pair.
AUDUSD Technical Analysis:
The AUDUSD is retesting a key support swing area on the daily chart between 0.6334 and 0.6363, a zone that was also tested last week.
Hourly Chart Insights:
Today’s high briefly traded above the falling 100-hour moving average (MA) during the early Asian session but failed to maintain momentum, leading to a downside rotation. For buyers to regain control, the price must break and hold above the 100-hour MA at 0.6370 and then work its way back above the falling 200-hour MA at 0.6389.
Absent that, and the sellers are still in firm control, and the price is likely to get below the 0.6364 level and probe lower.
Conclusion and Key Levels to Watch:
- The 200-hour MA acted as strong resistance last Thursday, capping gains and triggering a move lower.
- Failure to move above these levels will keep sellers firmly in control, reinforcing the bearish bias.
NZDUSD Technical Analysis:
The NZDUSD is testing key swing level lows on the daily chart:
- 0.57397 (November 2022 support)
- 0.5772 (October 27, 2023 support).
The price has stalled between these levels over the past three days, with the current price sitting at 0.5757. A move below 0.57397 would open the door for further downside momentum.
Hourly Chart Insights:
During the Asian session, buyers attempted to regain control, pushing the price above the 100-hour moving average (MA) at 0.5779 and reaching a high of 0.5792. However, momentum faded just short of the next target at 0.5796, and the price reversed lower.
Currently, the pair has fallen back below the 100-hour MA and is testing Friday’s low at 0.5752, signaling sellers are in control.
Key Levels to Watch:
- To shift the bias higher: The price must move above and stay above the falling 100-hour MA at 0.5775. Beyond that, targets include:
- 0.5796 (next resistance level)
- Falling 200-hour MA at 0.5806.
- To reinforce the bearish bias: A move below 0.57397 would open the door for further selling pressure.
Conclusion:
Sellers remain in control below the 100-hour MA, with 0.57397 as the next major downside target. Buyers need a sustained move above key resistance levels to shift momentum.