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AUDUSD & AUDNZD Poised For Breakout, Testing Trend Resistance

by on June 9, 2014 7:03 pm BST
 

The Aussie-dollar is testing several levels of resistance, which could lead in a price action breakout to the upside. First, price action is testing the larger downtrend created from the yearly high of .9756. Price action is currently being held around .9350.

Secondly, there is a near-term channel resistance that would be testing slightly higher of the larger downtrend at .9365/70. A close above these levels would give reason to overtake .9400, which would signal a future trend higher to .9460 price resistance.

Support for AUDUSD .9295 and .9210. The RSI is moving higher, but the + DMI is taking a pause and could trigger a small pullback. US treasuries are taken a break from uptrend, which is causing the US dollar to linger and consolidate. This could strengthen dollar-pegged pairs.

1D Chart of AUDUSD

1D Chart of AUDUSD

The AUDNZD is pushing higher, testing the daily 200 EMA. A close above will push the pair to 1.0180 and test price action resistance. The downward pressure in the New Zealand dollar could further add momentum to trend to 1.1190. If price action cannot hold ground above the 200 EMA, a pullback to 1.09340.

RSI is trending near overbought territory. A pullback is likely, but the pair will remain to the upside near-term.

1D Chart of AUDNZD

1D Chart of AUDNZD