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AUDUSD and NZDUSD Bear Trends Reinforced


Further losses for both the New Zealand and Australian Dollar spot FX rates into the holiday season, reinforcing intermediate-term bear trends. The US Dollar continues to strengthen across G10 currencies, leaving NZDUSD and AUDUSD aiming lower into year-end.

The mid-November sell offs for both these currencies after the US Presidential election result and further weakness since the mid-December FOMC rate hike leaves risks for still further erosion for late 2016 and into January 2017.

Read more forex analysis

NZDUSD

The mid-November breakdown through the multi-month “neckline” of the Head and Shoulders top from July, signalled an intermediate-term bearish shift, confirmed below .7030.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to .6800.
  • Below here targets .6676/64, .6572/41 and maybe as deep as .6343.

What Changes This? Above .7239 signals a neutral tone, only shifting positive above .7403.

Daily NZDUSD Chart

nzdusd chart

AUDUSD

The mid-November break of .7438 completed a multiple peak topping pattern, which leaves an intermediate-term bearish theme.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to .7141.
  • Below here targets .7000, .6971 and .6825.

What Changes This? Above .7630 signals a neutral tone, only shifting positive above .7778.

Daily AUDUSD Chart

audusd chart

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


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