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NZDUSD and AUDUSD rise as key technical levels get broken
NZDUSD has moved above last week’s high at 0.5871 and is now testing a swing zone at 0.5881 to 0.5886, while AUDUSD clears 0.7022 and looks toward its 100-day moving average near 0.70516.
Forexlive reports both the NZDUSD and AUDUSD rose sharply, with the NZDUSD up 1.45% on the day and the AUDUSD up 1.05%.
For NZDUSD, the rally pushed the pair above the 50% and 61.8% retracement levels and broke above last week’s high at 0.5871. The pair is now testing a swing area between 0.5881 and 0.5886, which has capped rallies since May, with a sustained move above it seen as strengthening the bullish case.
Downside risk for NZDUSD starts with the first close-risk level at 0.58705, followed by the broken 61.8% retracement level at 0.58526. For AUDUSD, the pair strengthened by moving above the 38.2% retracement of the decline from the May high to the late-June low at 0.7022, a level that rejected advances multiple times earlier in the month.
After clearing 0.7022, buyers will want the price to remain above that level and build momentum toward the 100-day moving average at 0.70516. Forexlive notes the pair has not traded above that moving average since June 15, and a break above it could shift attention toward the 50% retracement of the May-June decline at 0.7071.