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Australian and New Zealand Dollars Firmer Outlook

Technical Analysis

Solid gains by both the Australian and New Zealand Dollars versus the US Dollar recently, within broader ranges that have dominated in February.

This sets AUDUSD and NZDUSD bias for still more bullish prospects for the balance of this week and for latter February.

More technical analysis

AUDUSD

A robust Wednesday rebound above .7182 reinforces the broader range theme and dismisses the negative tone from the bearish outside Tuesday pattern, to set the risk higher again Thursday and aim back up at barriers at .7215/19/43 (through which would see a bigger picture bullish shift).

For This Week:

  • We see an upside bias for .7215/19/43; break here aims for .7260, .7301 and maybe .7327.
  • But below .7105 opens risk down to .7078 and .7060.

The previous push above .7225 set a broader ranger environment for February.

Short/ Intermediate-term Range Parameters: We see the range defined by .6914 and .7243.

Range Breakout Challenge

  • Upside: Above .7243 aims higher for .7327, .7385, .7440 and .7499.
  • Downside: Below .6914 sees risk lower for .6825 and .6645.

Daily AUDUSD Chart

AUDUSD

NZDUSD

The bearish outside Tuesday pattern (below .6602 and .6582 supports) has been dismissed by the robust Wednesday rebound, for a positive bias into Thursday.

For This Week:

  • We see an upside bias for .6676; break here aims for .6735/39, .6747/53 and maybe .6767/76.
  • But below .6564 sees .6541 and opens risk down to .6506.

An aggressive rally in early February above .6678 signalled a shift to a broader range theme.

Short/ Intermediate-term Range Parameters: We see the range defined by .6879 and .6418.

Range Breakout Challenge

  • Upside: Above .6879 aims higher through .6897 for 6970, 7009/12 and .7232.
  • Downside: Below .6418 sees risk lower for .6343, .6232 and .6195.

Daily NZDUSD Chart

NZDUSD

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