Aussie and Kiwi Dollar vs US Dollar Forecast
AUD/USD, NZD/USD – Bullish Development
Yesterday, US Dollar softened against Aussie and Kiwi Dollar. Today, AUD/USD rallied to three weeks high meanwhile, NZD/USD rallied to three months high.
The relative Strength Index (RSI) pointed higher on both pairs highlighting that buyers are in control.
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AUD/USD DAILY PRICE CHART (FEB 1, 2018 – DEC 3, 2019) Zoomed Out
AUD/USD DAILY PRICE CHART (July 15 – DEC 3, 2019) Zoomed IN
Looking at the daily chart, we notice on Friday AUD/USD bounced from its lowest level in seven weeks. Yesterday, the price rebounded from the high end of current trading zone 0.6753 – 0.6826.
A close above the high end may lead AUDUSD towards 0.6904. Further close above this level could embolden more market participants to push the price towards 0.6984. In that scenario, the potential rally might weaken at the weekly resistance level underlined on the chart (zoomed in) as some buyers could take profit at this point.
It’s worth noting that, if the price breaks and remains above the higher downtrend line on the trendlines fan originated from the July 18 at 0.7082, this suggests a rally towards 0.7016 as explained on the chart.
In turn, another failure in closing above the high end of current trading zone could reverse the pair’s direction towards the low end of the zone on the back of buyers exiting of the market. Further close below 0.6744 could open the door for sellers to press towards 0.6631. Nevertheless, the weekly support levels underscored on the chart offer an attractive exit points for some sellers.
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NZD/USD DAILY PRICE CHART (DEC 13, 2017 – DEC 3, 2019) Zoomed Out
NZD/USD DAILY PRICE CHART (JULY 18 – DEC 3, 2019) Zoomed In
From the daily chart, we notice yesterday NZD/USD rallied to a higher trading zone 0.6438 – 0.6565. Additionally, the price broke above the neckline of inverted head and shoulders pattern residing at 0.6450 hinting to a rally towards 0.6690.
A close above the high end of the zone could be an additional signal for buyers to push NZDUSD towards 0.6690. Although, the weekly resistance levels marked on the chart (zoomed in) should be considered.
On the flip-side, any close below the low end of the current trading zone could reverse current direction sending NZDUSD towards the vicinity of 0.6236-24. Yet, the daily and weekly support levels should be kept in focus.
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Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi