The AUDUSD and NZDUSD have been running in tandem this week to the downside, but the NZDUSD has seen more downside momentum.
Yesterday, the AUDUSD fell below its key 200 day moving average and 50% retracement near 0.6583 and 0.6579 respectively. The price then increase momentum with a break below the 61.8% retracement of the move up from the April low at 0.65283.
However momentum quickly shifted back to the upside on dip buying, and when the price moved back above the 61.8% retracement (at 0.65283 – see chart below), the shorts started to cover. That move higher has continued today with the price reaching a high of 0.6568.
Going forward in the AUDUSD, it still takes a move above the 50% retracement at 0.65797 and the 200-day moving average at 0.6583 to give buyers added confidence. On the downside, a break back below 61.8% retracement of 0.6528, would give sellers more confidence for more downside momentum.
The NZDUSD (see chart below), has been on a speedier downside path last week and into this week. For it, the price fell below at 61.8% retracement on Monday at 0.59927 and increased momentum for the rest of the week.
After a brief stall at 0.5914, the price fell below that level yesterday and extended nearly to the May 1 low at 0.5873 and the April 19 low at 0.5879 (ahead of those levels).
The subsequent bounce off it’s lows, has only taken the price up to 0.59045. If the buyers are to take more control they need to get above the 0.5900 level (and stay above) and then the 0.59145 level at a minimum.
Absent that, and the buyers are simply not winning. The sellers are winning.
Watch the video to see and here it all!
This article was written by Greg Michalowski at www.forexlive.com.
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