Aussie and Kiwi Dollar vs US Dollar Technical Forecast
- US Dollar price action against Australian Dollar and New Zealand Dollar.
- AUD/USD, NZD/USD Charts
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AUD/USD, NZD/USD – Form Bearish to Sideways
In early Oct, AUD/USD rebounded from multi-year low at 0.6671. The price rallied after, and started a sideways move creating higher highs with lower lows. On the other hand, NZD/USD printed on Oct 1 its lowest level in a decade at 0.6202, then corrected higher starting a trendless move similarly to AUDUSD.
Currently, the relative Strength Index (RSI) moves nearby 50 on both pairs, indicating to market’s participants hesitation to lead the price in a clear direction.
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AUD/USD DAILY PRICE CHART (April 1, 2018 – Nov 19, 2019) Zoomed Out
AUD/USD DAILY PRICE CHART (July 1 – NOv 19, 2019) Zoomed IN
Looking at the daily chart, we notice on Oct 31, AUD/USD peaked at 0.6929. Later, the price declined to a lower trading zone 0.6753 – 0.6826.
This week, the pair U-turned towards the high end of the zone. Thus, a close above the high end could lead the price towards 0.6904. Yet, buyers should keep an eye on the daily resistance level underlined on the chart (zoomed in).
In turn, any failure in closing above the high end of the zone could mean buyer’s hesitation and cause a reversal towards the low end of the zone. Further close below the low end could open the way for sellers to press towards 0.6631. Although, the weekly support levels underscored on the chart should be considered.
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NZD/USD DAILY PRICE CHART (July 6, 2017 – Nov 19, 2019) Zoomed Out
NZD/USD DAILY PRICE CHART (JULY 10 – Nov 19, 2019) Zoomed In
From the daily chart, we notice on Aug 15 NZD/USD declined to a lower trading zone 0.6236 - 0.6438. Since then, buyers failed in multiple occasions to push the price to the higher zone.
On Nov 8, the pair rallied before testing the low end of the zone then created the right shoulder of inverted head and shoulders pattern, where the neckline resides on the high end of current trading zone. This suggests, if NZDUSD breaks and remains above the high end, the price could rally towards 0.6565 then 0.6642. Nevertheless, the weekly resistance levels marked on the chart (zoomed in) should be monitored.
On the flip-side, any failure in closing above the high end of the zone would signal buyer’s pullout of the market, and could send NZDUSD towards the low end of the zone. That said, the daily and weekly support levels underlined on the chart should be kept in focus.
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Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
