In this video, I take a look at two currency pairs – the AUDUSD and NZDUSD. Both are trending lower this week as traders react to slower growth from China. Both countries do rely on China for growth.
For the AUDUSD, it is breaking lower but approaching key support against it rising 100-day moving average at 0.6606. The last time the price traded below its 100-day moving average was back on May 9. Look for buyers to lean against that moving average (buyers) with stops on a break below.
For the NZDUSD, it sliced below its 100 day MA last week, and that started a trend move lower that has seen the price move from 0.6062 to a low today of 0.5925 (so far). Yesterday, the price fell below its 61.8% retracement at 0.59927. Staying below that level, kept the sellers in full control. The move below that level opens the door for a potential retest of the April lows near 0.5852 (over time). The current price of trades at 0.5953. It would take a move back above the 61.8% retracement to give the buyers some confidence for additional upside probing.
This article was written by Greg Michalowski at www.forexlive.com. Source