The New Zealand Dollar (NZD) and Australian Dollar (AUD) both recorded notable gains against the US Dollar (USD) during today's trading session. The NZDUSD pair saw an increase of approximately 1.45%, while the AUDUSD pair advanced by around 1.05%. These movements indicate a strengthening of the antipodean currencies relative to the greenback, a development closely watched by retail forex and CFD traders for potential trend shifts or trading opportunities.
For the NZDUSD currency pair, the rally propelled its value beyond both the 50% and 61.8% Fibonacci retracement levels. Furthermore, the pair surpassed its previous week's peak of 0.5871. Currently, the NZDUSD is testing a critical resistance zone situated between 0.5881 and 0.5886, an area that has historically limited upward movements since May. A definitive breach above this range would reinforce a bullish outlook, potentially paving the way for further appreciation. Conversely, immediate downside support can be observed near 0.58705, followed by the 61.8% retracement level at 0.58526.
AUDUSD Breaks Key Resistance
The AUDUSD pair also demonstrated considerable strength, successfully pushing past the 38.2% Fibonacci retracement level at 0.7022. This particular level, derived from the decline spanning May's high to June's low, has proven to be a significant barrier in the past, having acted as resistance on multiple occasions earlier this month. With this obstacle now overcome, market participants will be observing whether the price can maintain its position above 0.7022 and gather momentum towards the 100-day moving average, positioned at 0.70516. The AUDUSD has not traded above this specific moving average since mid-June.
The sustained upward momentum in both the NZDUSD and AUDUSD pairs reflects a shift in market sentiment, with both currencies demonstrating resilience against the US dollar. Traders will be monitoring whether these pairs can consolidate their gains above the recently cleared technical levels, or if profit-taking pressures will lead to a retest of prior support zones.
📰 Based on reporting from: ForexLive →