Aussie and Kiwi Dollar vs US Dollar 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 – Trading Higher
On Friday, NZD/USD rallied to 0.6576 - its highest level in four months. The pair closed the weekly candlestick in the green with nearly 2.3% gain. Meanwhile, AUD/USD printed on Dec 3 its highest level in three weeks at 0.6862. The price closed on Friday with a 1.2% gain.
The relative Strength Index (RSI) remained above 50 on both pairs reflecting that buyers remain in control.
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AUD/USD DAILY PRICE CHART (FEB 1, 2018 – DEC 10, 2019) Zoomed Out
AUD/USD DAILY PRICE CHART (July 15 – DEC 10, 2019) Zoomed IN
Looking at the daily chart, we notice on Dec 3 AUD/USD rallied to a higher trading zone 0.6826 – 0.6904. Some buyers took profit, and this led the price to test the low end of the zone.
If the pair closes below the low end of the zone this could embolden sellers to send AUDUSD towards 0.6745. Further close below this level could cause more bearishness towards 0.6670. Although, the weekly support level underlined on the chart (zoomed in) should be considered.
On the flip-side, if the price remains trading above the low end of the zone, this could convince more buyers to join the market and push towards 0.6904. Nevertheless, the weekly resistance level should be monitored.
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NZD/USD DAILY PRICE CHART (DEC 13, 2017 – DEC 10, 2019) Zoomed Out
NZD/USD DAILY PRICE CHART (JULY 18 – DEC 10, 2019) Zoomed In
From the daily chart, we notice on Dec 2 buyers pushed NZD/USD to the higher trading zone 0.6436- 0.6590. The price broke above the neckline of inverted head and shoulders located at 0.6450 eyeing a test of 0.6688.
Thus, a close above 0.6595 could cause a rally towards 0.6704. That said, this rally could weaken at the weekly resistance levels marked on the chart (zoomed in) as those levels provides some clear exit points for buyers.
On the other hand, any failure in closing above the high end of the zone may signal buyer’s hesitation and their possible exit from the market. This could cause a reverse in the price’s direction towards the low end of the zone. Further close below the low end of the zone could embolden market's participants to press towards 0.6383. in that scenario, the daily 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
