fbpx

NZDUSD and AUDUSD Holding onto Bear Trends

nzdusd chart

  • When we last looked at NZDUSD and AUDUSD here, we highlighted the ongoing intermediate-term bear trends, and despite subsequent corrective consolidation activity for both FX currency rates, the themes remain for further weakness through late May and on into June.
  • A tentative rebound effort by NZDUSD over the past 1-2 weeks (from mid-May), but whilst contained below .7206 we still see an intermediate-term bear trend and look for further losses into latter Q2.
  • Although AUDUSD has seen a positive correction phase from mid-May, we still see the underlying bear trend intact (for the April surrender of the key .7640 level) and whilst below .7813, we see risks lower into June.

 

NZDUSD Bear bias

A modest setback on Friday to reject the negligible rebound attempt Thursday (still capped below initial .6943 resistance), sustaining negative pressures from last Wednesday’s notable setback from below the barriers at  .6987 and .6999 (from .6975), keeping risks lower into the US and UK Holidays on Monday.

The latter April plunge through key .7151 signalled a large topping pattern (Triple Top) and shifted the intermediate-term outlook from bullish to bearish.

For Today:

  • We see a downside bias for .6880 and .6849, possibly towards .6818/15.
  • But above .6975 targets .6987 and .6999.

Intermediate-term Outlook – Downside Risks: We see a downside risk for .6778.

  • Lower targets would be .6676/64 and .6343.
  • What Changes This? Above .7206 shifts the outlook back to neutral; above .7395 is needed for a bull theme.

Resistance and Support:

.6955 .6975* .6987* .6999** .7042
.6880* .6849** .6818/15** .6800 .6818/15**

4 Hour NZDUSD Chart

nzdusd chart

 

AUDUSD Again, indecisive

A minor rebound Friday then a setback, continuing the consolidation theme evident all of last week and still leaving a neutral tone into the US and UK Holidays on Monday.

The latter April surrender of key .7640 support set an intermediate-term bear trend again, reinforced by the surrender of .7500.

For Today:

  • Neutral, looking for a breakout.
  • Above .7590 quickly aims for .7606/09 and maybe .7648.
  • Below .7520 aims for .7500, maybe .7474.

Intermediate-term Outlook – Downside Risks: We see a downside risk for .7368/31.

  • Lower targets would be .7155/41 and .7000.
  • What Changes This? Above .7813 shifts the outlook back to neutral; above .7916 is needed for a bull theme.

Resistance and Support:

.7590 .7606/09** .7648 .7678* .7717
.7520 .7500* .7474 .7445** .7410/00*

4 Hour AUDUSD Chart

 audusd chart

Are you ready to trade?

Sign up with ForexTime LogoYour capital is at risk

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