Aussie & Kiwi Dollar vs USD Price: AUD/USD, NZD/USD Breakout or Breakthrough?
Aussie and Kiwi Dollar vs US Dollar Outlook
AUD/USD, NZD/USD – Price Action
Yesterday, AUD/USD resumed bearish price action and declined to 0.6759- its lowest level in six weeks. On the other hand, since Nov 8 NZD/USD corrected its uptrend move then stuck in a sideways pattern.
The relative Strength Index (RSI) remained flat below 50 on AUD/USD reflecting weak sellers in a bearish market. Meanwhile, the oscillator remained flat above 50 on NZD/USD indicating to weak buyers in a bullish market.
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AUD/USD DAILY PRICE CHART (April 1, 2018 – Nov 28, 2019) Zoomed Out
AUD/USD DAILY PRICE CHART (July 15 – NOv 28, 2019) Zoomed IN
Looking at the daily chart, we notice on Nov 19 AUD/USD failed to rally to the higher trading zone, highlighting buyer’s hesitation at this stage. On the following day, the pair repeated its failure then closed below the 50 -Day average. This reversed its direction as buyers took profit and exited the market.
Thus, the pair remained in the trading zone 0.6753- 0.6826 entered on Nov 14. Currently, AUDUSD trades lower eyeing a test of the low end of the zone. A close below 0.6744 could persuade more sellers to join the market and press towards 0.6631. Although, this move could lose momentum at the weekly support levels underlined at the chart (Zoomed in) as some sellers may take profit at these points.
On the flip-side, any failure in closing below the low end would mean seller’s reluctance. This could lead the price to correct higher towards the high end of the zone. Further close above the high end could see AUDUSD pushing towards 0.6904. Nevertheless, the weekly resistance level underscored on the chart should be considered.
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NZD/USD DAILY PRICE CHART (July 6, 2017 – Nov 28, 2019) Zoomed Out
NZD/USD DAILY PRICE CHART (JULY 10 – Nov 28, 2019) Zoomed In
From the daily chart, we notice on Nov 21 NZD/USD rebounded from the high end of current trading zone 0.6236- 0.6438. However, the price remained nearby the high end of the zone, indicating that buyers are still holding positions.
Thus, a close above the high end of the zone may convince more buyers to join the market and push towards 0.6565. Additionally, if the price breaks and remains above 0.6450 this suggests NZDUSD could rally towards the vicinity of 0.6681-90. In that scenario, the weekly resistance levels marked on the chart should be kept in focus.
In turn, another failure in closing below the high end could reverse the pair’s direction as buyers could take profit and exit the market. This may lead NZDUSD towards the low end of the trading zone. Nevertheless, the daily and weekly support levels underlined on the chart should be watched closely.
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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.