The AUDUSD and NZDUSD pairs have been going hand in hand this week towards the downside, but the NZDUSD pair has seen more bearish momentum.
Yesterday, the AUD/USD pair fell below its 200-day moving average and 50% retracement near 0.6583 and 0.6579 respectively. The price then gained momentum after breaking the 61.8% retracement level of the move up from the April low at 0.65283.
However, the momentum quickly turned bullish with buying on the dip, and when the price moved back above the 61.8% retracement level (at 0.65283 – see chart below), short sellers started covering. This bullish move continued today with the price reaching a high of 0.6568.
Going forward, AUDUSD still needs to move above the 50% retracement level at 0.65797 and the 200-day moving average at 0.6583 to give buyers more confidence. On the downside, a break back below the 61.8% retracement level at 0.6528 would give sellers more confidence for further downside momentum.
The NZD/USD pair (see chart below) was on a faster downward trajectory last week and into this week. The price fell below the 61.8% retracement level on Monday at 0.59927 and the momentum increased for the rest of the week.
After a brief pause at 0.5914, the price fell below that level yesterday and extended almost to the May 1 low at 0.5873 and the April 19 low at 0.5879 (against those levels).
The subsequent bounce from the lows only took the price to 0.59045. If the buyers want to take control of the market further, they need to break (and hold above) the 0.5900 level and then the 0.59145 level as a minimum.
In the absence of this, buyers will simply not win, but sellers will.
Watch the video to see and here’s everything!