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Australian and New Zealand Dollars Stay Bullish (Despite Pause)

AUDUSD Chart

  • Both the Australian and New Zealand Dollars reinforced their intermediate-term bullish outlooks versus the US Dollar in late July, extending up trends from Q2.
  • Although the start of August has seen consolidation activity for both AUDUSD and NZDUSD, even minor support levels are intact, leaving risk higher into early/mid-August.
  • The risk remains for significant moves higher for both AUDUSD and NZDUSD through the summer and potentially into September.

AUDUSD – Bullish trend reinforced

A positive consolidation Wednesday above support at .7934, after a Tuesday push above .8007 resistance, leaving threat for renewed gains into Thursday.

Furthermore, the robust July recovery activity through the psychological/option target at .8000 has reinforced the intermediate term bullish outlook.

For Today:

l We see an upside bias back up to .8043 closer to .8065, Maybe up 2.8105.

l But below .7934 opens risk down to the .7876/74 area, which we would look to try to hold.

Intermediate-term Outlook – Upside Risks:

l We see a positive tone with the bullish threat to the 2015 high at .8164.

l Above here targets .8295 and the .8452/82 area.

What Changes This? Below .7784 signals a neutral tone, only shifting negative below .7568.

Daily Chart

AUDUSD Chart

NZDUSD – Upside bias

A more negative consolidation Wednesday probing down through minor support at .7423, but a rebound from ahead of next support at .7399 sustains upside pressures from the latter July surge up through the September 2016 cycle high at .7485 and psychological/option target .7500, leaving risk higher for Thursday.

Furthermore, the push through .7485 reinforces the intermediate-term bullish outlook into August.

For Today:

l We see an upside bias back up to .7496; Through here target .7558

l But below .7399 opens risk down to .7330.

Intermediate-term Outlook – Upside Risks:

l We see a positive tone with the bullish threat through .7485.

l Above here targets .7744 and .8000/45 area.

What Changes This? Below .7198 signals a neutral tone, only shifting negative below .7003.

Daily Chart

NZDUSD Chart

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