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AUDUSD and NZDUSD Rebound, but Underlying Bearish Bias Intact

Video Analysis

Both the Australian and New Zealand Dollars have been in sideways consolidation through later September, digesting previous bearish activity from mid-September.

Despite modest rebound efforts by AUDUSD and NZDUSD, short/ intermediate term bearish pressures remain intact to leave the bias for downside extensions into early October.

AUDUSD

The mid-September setback from .7275/80 with shooting star candlestick patterns and the latter September nudge below the .6942 level leaves a bearish theme into early October.

A bounce, but another stall at .7042/43 resistance Wednesday leaves a negative bias for Thursday.

Short/ Intermediate-term Outlook – Downside Risks:

  • We now see a more negative tone with the bearish threat to .6936 and .6894.
  • Below here targets .6901, .6857 and .6645.

What Changes This? Above .7280 signals a neutral tone, only shifting positive above .7440.

Daily AUDUSD Chart

AUDUSD

 

NZDUSD

A probe above the .6393/9403 resistance area Wednesday, but reluctant to build on this move to leave a downside bias for Thursday.

Furthermore, the mid-September setback from ahead of barriers at .6474 and .6505/13 maintains risk to the downside into early October.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to longer term targets at .6196/54.
  • Overshoot threat is lower to .6000, maybe .5741.

What Changes This? Above .6561 signals a neutral tone, only shifting positive above .6772.

Daily NZDUSD Chart

NZDUSD

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