The previous AUDUSD breakdown below .7487 in mid-April signaled an intermediate term bearish shift, was renewed negative pressures this week have reinforced that bear view and downside risks.
Moreover, for NZDUSD, the negative tone this week has set up risk of an intermediate-term bearish switch, we risk down through the .6867 level.
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AUDUSD – Downside bias
As expected another setback on Wednesday down through support at .7511, .7488 and .7469, sustaining the very short-term negative tone into Thursday.
Furthermore, this activity reinforces the early April breach of .7487, which produced an intermediate-term bearish shift.
l We see a downside bias for the .7453/45 area; break here aims for .7425 and .7400.
l But above .7505 opens risk up to .7556 and maybe towards .7591.
Intermediate-term Outlook – Downside Risks:
l We see a negative tone with the bearish threat to .7283/79.
l Below here targets .7155/41/06 area, .7000 and .6971.
What Changes This? Above .7778 signals a bullish tone.
4 Hour AUD/USD Chart
NZDUSD – Bearish threat
Another push lower as expected through support at .6944, .6910 and a key level at .6886 and poised at critical support at .6867, with the risk down through here into Thursday.
We now see very strong risk of an intermediate-term bearish shift, only confirmed below .6867.
l We see a downside bias for critical . 6867; break here aims for .6800.
l But above .6913 opens risk up to .6968.
Intermediate-term Range Parameters: We see the range defined by .7403 and .6867.
Range Breakout Challenge
l Upside: Above .7403 aims higher for .7485, .7564 and .7744.
l Downside: Below .6867 sees risk lower for .6800, .6676/64, .6572/41 and maybe as deep as .6343.