AUD/USD, NZD/JPY Technical Outlook & More
Charts of Interest:
AUD/USD is having a difficult time getting up off of big support extending over from August. The 6700/6670-area has been a big one, with powerful rejections developing on several occasions. But the most recent test isn’t bringing much inspiration to buyers, thus leaving Aussie looking like a breakdown is nearing. A drop will leave it in search of support as you have to go back to 2008/09 to find the next major levels of price support down as far as 6000.
AUD/USD Daily Chart (weak bounce setting up for a breakdown)
NZD/JPY is setting itself up for more weakness ahead with the sideways price action pointing to a failure for the market to reverse earlier weakness. There is also a good line of support to watch here around the 6995-mark. It started as resistance during a consolidation phase back from October to November, but has now become a solid line of support. A firm break through 6995 is seen as having NZD/JPY rolling downhill some more.
NZD/JPY Daily Chart (breakdown out of rectangle could be near…)
For all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at@PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.