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NZDUSD and AUDUSD See Risk of a More Bearish Tone

Technical Analysis

Both the New Zealand and Australian Dollars have seen a significant shift in very short-term prospects this week, into late April against the US Currency.

Although NZDUSD and AUDUSD have produced robust gains from early Q1 2016, the recent setbacks have questioned the intermediate term bullish themes. This leaves risk for more notable corrections lower into month-end and through into early May.

NZDUSD

Written post FOMC, but before the RBNZ!

A Wednesday push into the firm .6819/02 support area, to reinforce the previous plunge through trend line support from mid-March, and to set a bear bias into Thursday.

For Thursday/ Friday:

  • We see a downside bias for .6802; break here aims for .6755/48.
  • But above .6910 opens risk up to .6936, maybe .6983..

Short/ Intermediate-term Outlook – Upside Risks:

  • We see a positive tone with the bullish threat to .7000/12.
  • Above here targets .7232 and .7396/7413.

What Changes This? Below .6664 signals a neutral tone, only shifting negative below .6541.

Daily NZDUSD Chart

NZDUSD

AUDUSD

An aggressive plunge lower Wednesday through notable supports at .7639 and .7595, to negate the April up leg and set the bias lower into Thursday.

Bigger picture threat is now to neutralise the intermediate-term bull theme with a break of .7474 (bearish below .7411).

For Thursday/ Friday:

  • We see a downside bias for 7547 and .7525; break here aims for .7489/74.
  • But above .7632 opens risk up to .7700.

Short/ Intermediate-term Outlook – Upside Risks: The break above .7243 set a bull theme.

  • Whilst above .7474 we see a positive tone with the bullish threat to .7738.
  • Above here targets.7849 and .8000.

What Changes This? Below .7474 signals a neutral tone, only shifting negative below .7411.

Read more technical analysis

Daily AUDUSD Chart

AUDUSD

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