The NZDUSD and the AUDUSD are both up over 1% on the day. What next?
The NZDUSD and AUDUSD are both posting strong gains today, with the NZD leading the way. The NZDUSD is up 1.45%, while the AUDUSD has advanced 1.05%.
For the NZDUSD, today’s rally has pushed the pair above both the 50% and 61.8% retracement levels, while also breaking above last week’s high at 0.5871. The pair is now testing an important swing area between 0.5881 and 0.5886 that has capped rallies since May. A sustained move above that zone would strengthen the bullish case and open the door for additional upside. On the downside, the first close-risk level comes in at 0.58705, followed by the broken 61.8% retracement at 0.58526.
The AUDUSD has also strengthened, moving above the 38.2% retracement of the decline from the May high to the late-June low at 0.7022. That level is significant because it rejected advances on three separate occasions earlier this month—twice holding as resistance and once allowing only a brief break before sellers regained control. With that hurdle now cleared, buyers will want to see the price remain above 0.7022 and build momentum toward the 100-day moving average at 0.70516. The pair has not traded above that moving average since June 15. A break and sustained move above it would shift the focus to the 50% retracement of the May-June decline at 0.7071.
This article was written by Greg Michalowski at investinglive.com.