We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • ahead of the weekend. bit of tightening up $SPX $SPY https://t.co/CkzkfztBnj
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.96%, while traders in France 40 are at opposite extremes with 75.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xjI8nYENS0
  • $USDMXN's aggressive intraday reversal from highs has left a very large upper wick on the daily chart. Biggest bullish tail since Sep 5, 2018 https://t.co/xgKxc9FC68
  • $GBPUSD churns steadily lower as the Pound Sterling succumbs to broader US Dollar strength, but the cable could soon find technical support. Get your GBP/USD market update from @RichDvorakFX here: https://t.co/3nkJfWLXXV https://t.co/H8x3p1S413
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.28% France 40: -0.28% Wall Street: -0.91% US 500: -1.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/tXRNBSAR3O
  • Fed's Bostic: - No structural changes from coronavirus expected - Not concerned over financial markets having a different outlook on rates $DXY
  • A perusal of top market headlines includes stories equivalent to Dow holds near record highs as outlook for growth and return prevails right next to a 30-year Treasury bond hits record high as market seeks safety. Hmmm... https://t.co/Fe1j9IRx8S
  • German Chancellor Merkel: - A lot of work until a budget deal is reached in the EU - Not sure when EU members will meet again $EURUSD
  • Markets: Challenge accepted https://t.co/pTMKvvCtPi
  • Fed's Clarida: - Expectations are near low end for price stability - BBG
AUD/USD, NZD/USD Outlook: Price Recovery Faces Key Resistance Levels

AUD/USD, NZD/USD Outlook: Price Recovery Faces Key Resistance Levels

2019-10-08 14:00:00
Mahmoud Alkudsi, Market Analyst
Share:

AUD/USD, NZD/USD Charts and Analysis

Did we get it right with our Gold and USD Dollar forecasts? Find out more for free from Q4 main currencies and commodities forecasts

AUD/USD, NZD/USD – Weaker Sellers

On Friday, AUD/USD closed the weekly candlestick with a bullish Doji pattern, highlighting a possible reversal as expected in our last update. The price closed with nearly 0.1% gain. Similarly, NZD/USD closed the weekly candlestick in the green with a 0.3% gain.

The relative Strength Index (RSI) has been rising on both pairs since Oct 1 (from 33 to 47) reflecting the weakness of current downtrend momentum on both pairs.

Having trouble with your trading strategy? Here’s the #1 Mistake That Traders Make

AUD/USD DAILY PRICE CHART (March 15, 2018 – Oct 8, 2019) Zoomed Out

AUD/USD, NZD/USD Outlook: Price Recovery Faces Key Resistance Levels

AUD/USD DAILY PRICE CHART (July 2 – Oct 8, 2019) Zoomed IN

AUD/USD, NZD/USD Outlook: Price Recovery Faces Key Resistance Levels

Looking at the daily chart, we notice yesterday AUD/USD returned to the same old trading zone abandoned on Friday 0.6631- 0.6744. Therefore, the price may need to close above 50-day average to talk about a possible rally towards 0.6826.

It's worth mentioning the bullish divergence between (RSI) and the price, as AUDUSD created a low with a lower low meanwhile, we find a low with a higher low on the oscillator.

Additionally, AUDUSD could rally towards 0.7000 handle, if breaks and remains above the neckline of a double bottom pattern residing at 0.6894 as shown on the chart (zoomed in). In that scenario, the weekly resistance levels underlined on the chart need to be monitored along the way.

On the other hand, any close below the low end of the zone could resume bearish price action towards 0.6594.

Just getting started?See our Beginners’ Guide for FX traders

NZD/USD DAILY PRICE CHART (June 15, 2017 – Oct 8, 2019) Zoomed Out

AUD/USD, NZD/USD Outlook: Price Recovery Faces Key Resistance Levels

NZD/USD DAILY PRICE CHART (July 24 – Oct 1, 2019) Zoomed In

AUD/USD, NZD/USD Outlook: Price Recovery Faces Key Resistance Levels

From the daily chart, we notice on Oct 1 NZD/USD declined to its lowest level in a decade. However, the price remained in the current trading zone 0.6236- 0.6438 indicating to seller’s hesitation to keep pressing the price at this stage.

Additionally, we notice a bullish divergence between (RSI) and the price similar to the one on Aussie Dollar. Hence, NZDUSD could be looking for a test of the high end of the zone contingent on clearing the daily and weekly resistance levels marked on the chart (zoomed in).

That said, any close below the low end of the zone could send NZDUSD towards 0.6136. Although, the daily support level at the Oct 1 low should be considered. See the chart to know more about lower trading zone with weekly support levels to watch in a further bearish scenario.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.