fbpx

NZDUSD and AUDUSD Bullish Threats


A positive consolidation tone has developed through January for both NZDUSD and AUDUSD spot currency rates.

In November-December 2016, the US$ bull trend dominated, driven by the US Presidential election result and the FOMC rate hike (the whole “Trumpflation” trade). However, US Dollar losses in January have neutralised this bull trend.

Furthermore, NZDUSD and AUDUSD rallies have established broader, intermediate-term range environments.

The skewed risk into February is for a bullish resolution, but this would require strong follow-through gains, with a NZDUSD push above .7403 and an AUDUSD break through .7778.

NZDUSD

A minor dip, but to hold above modest support at .7205, after a new 2017 recovery high Thursday and the Tuesday push up through the key level at .7239, keeping risk higher Monday.

For Today:

  • We see an upside bias for .7313; break here aims for .7343, maybe .7362.
  • But below .7205 opens risk down to .7157, maybe .7113/7092.

Short/ Intermediate-term Range Parameters: We see the range defined by .7403 and .6867.

Range Breakout Challenge

  • Upside: Above .7403 aims higher for .7485, .7564 and .7744.
  • Downside: Below .6867 sees risk lower for .6800, .6676/64, .6572/41 and maybe as deep as .6343.

Daily NZDUSD Chart

nzdusd chart

AUDUSD

Another new recovery high Friday above resistance at .7581, and despite a dip, support at .7489 is untouched, leaving the risk to the upside Monday.

Furthermore, the mid-January push above .7525, shifted the intermediate-term outlook from bearish to neutral.

Growing risk into February is for a push above .7778, which would see an intermediate-term Bullish shift.

For Today:

  • We see an upside bias for .7588; break here aims .7630.
  • But below .7489 opens risk down to .7461, maybe .7425.

Short/ Intermediate-term Range Parameters: We see the range defined by .7155 and .7778.

Range Breakout Challenge

  • Upside: Above .7778 aims higher for .7835/49/78 and .80000.
  • Downside: Below .7155 sees risk lower for .7141, .7106, .6971 and maybe .6825.

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.


Popular Brokers