AUD/USD and NZD/USD Eyeing Further Upsides

FXOpen

AUD/USD started a nice upside move from 0.7530, broke the 0.7600 resistance, and is currently eyeing more upsides. NZD/USD is trading with a positive bias and is about to break a key contracting triangle.

Important Takeaways for AUD/USD and NZD/USD

  • The Aussie Dollar traded higher recently and broke a major hurdle near 0.7600.
  • There was a break above a contracting triangle with resistance at 0.7570 on the hourly chart of AUD/USD.
  • NZD/USD is approaching a key break with support at 0.6995 and resistance near 0.7010.
  • The Australian Retail Sales in April 2018 increased 0.4% (MoM), more than the forecast of +0.2%.

AUD/USD Technical Analysis

The Aussie Dollar formed a major support near 0.7510-20 and traded higher against the US Dollar. The AUD/USD pair moved above the 0.7550 and 0.7580 resistance levels to set the pace for more gains.

Later, the pair broke a contracting triangle with resistance at 0.7570 on the hourly chart to clear the path for further upsides. Lastly, the pair succeeded in clearing a crucial resistance near 0.7590-0.7600.

AUD/USD Technical Analysis Chart

The pair is currently trading in a positive zone and is testing the 1.236 Fib extension level of the last decline from the 0.7592 high to 0.7513 low. In the short term, the pair may well correct a few pips and revisit the 0.7600 level.

The mentioned 0.7600 broken resistance is likely to act as a support. Below this, the pair might test the 0.7580 level. On the upside, a break above the 0.7615 level could push it towards the 0.7640 level.

The stated 0.7640 is a key barrier since it is the 1.618 Fib extension level of the last decline from the 0.7592 high to 0.7513 low.

Fundamentally, the Australian Retail Sales figure for April 2018 was released by the Australian Bureau of Statistics. The market was looking for a rise of 0.2% in sales in April 2018, compared with the previous month.

However, the outcome was on the higher side as there was a rise of 0.4% in sales, better than the last 0%. The report added that:

Food retailing (0.4%), Household goods retailing (0.4%), other retailing (0.2%), and Cafes, restaurants and takeaway food services (0.1%). Clothing, footwear and personal accessory retailing (-0.2%) and Department stores (-0.1%) fell in trend terms in April 2018

Overall, the market sentiment is positive for AUD/USD and the pair is likely to test the 0.7640 resistance in the near term.

NZD/USD Technical Analysis

The New Zealand Dollar started a downside correction after trading as high as 0.7023. The NZD/USD pair tested the 0.6960 level, which was a resistance earlier and acted as a support.

The pair started a fresh upside wave and moved above the 50% Fib retracement level of the last decline from the 0.7023 high to 0.6960 low. More importantly, the pair moved above the 0.7000 handle and the 50 hourly simple moving average.

NZD/USD Technical Analysis Chart

At the moment, the pair is approaching a key break since there is a contracting triangle in place with resistance at 0.7010. Above this, the pair may retest the 0.7023 high and it could even break it.

On the flip side, if the pair breaks the 0.7000 and 0.6995 support levels, it could retest the last low of 0.6960 in the near term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.