NZDUSD shifts bullish; AUDUSD poised for a similar signal

nzdusd

  • In our 31st October report here we looked at potentially positive, even bullish technical signals for both NZDUSD and AUDUSD currency rates.
  • A global shift back from late October to more of a “risk on” scenario has seen US Dollar weakness prevail, which has allowed for solid gains by both NZDUSD and AUDUSD.
  • The NZDUSD push above .6618 has seen the intermediate-term outlook shift to bullish.
  • For AUDUSD, the threat is for a break above .7315 for a similarly bullish signal.

 

NZDUSD Bullish tone

An aggressive surge Wednesday driven by the New Zealand Employment data and post-midterm elections in the US, through notable resistances at key .6696/99 swing highs and peak at .6727, building on the solid consolidation previously this week above new platform support at .6629, (plus the early November surge through the key .6618 level), to leave risks for further gains Thursday.

The early November aggressive surge above .6618 set an intermediate-term bull trend.

For Today:

  • We see an upside bias for .6798 and the key .6835, 6851 and 6858 swing highs, even towards .6900.
  • But below .6743 targets .6710, maybe towards .6662.

Intermediate-term Outlook – Upside Risks: We see an upside risk for be .7060.

  • Higher targets would be .7437 and .7558.
  • What Changes This? Below .6629 shifts the outlook from bullish to neutral and only through .6461 to a bear theme.

Resistance and Support:

.6798* .6835** .6851/58*** .6900 .6921**
.6743* .6710 .6662* .6629*** .6575*

4 Hour NZDUSD Chart

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AUDUSD Intermediate-term bullish threat through .7315

A surge Wednesday pre- and post-midterm elections in the US from anew platform support at .7211, through .7258 and .7268 resistances, building on last week’s reversal above the down trend line from August (and prior early November surge through the key .7159 level for a Double Bottom), to keep the bias higher into Thursday.

Th early November surge through .7159 set an intermediate-term range defined as .7018 to .7315, BUT with skewed threat for an intermediate-term bullish shift above .7315

For Today:

  • We see an upside bias for .7300; break here quickly aims for key .7315, possibly towards .7362.
  • But below .7246 aims for .7211, maybe for .7177.

Intermediate-term Range Breakout Parameters: Range seen as .7018 to .7315.

  • Upside Risks: Above .7315 sets a bull trend to aim for .7484, .7668 and .7813.
  • Downside Risks: Below .7018 sees a bear trend to target .7000, .6825 and .6500.

Resistance and Support:

.7300 .7315*** .7362* .7382** .7412
.7246 .7211** .7177** .7149 .7119*

4 Hour AUDUSD Chart

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