The AUDUSD and the NZDUSD are both lower as risk-off sentiment and geopolitical tensions hurt what has been a bullish bias in the pairs.
The AUDUSD reached the highest level for the year yesterday forming a double top in the process (going back to February 2023). The double top, did give sellers the go-ahead to push lower from a technical perspective.
Today, the price has continued the downward momentum, with the price moving below its rising 100 hour moving average at 0.68931. Bearish tilt.
Recall from last week, the price also move below that moving average level before basing and rotating back to the upside. That type of price action(i.e a break back above the 100-hour MA).
On the downside for the AUDUSD, the price still has the rising 200-hour moving average (green line) to target. That moving average comes in at 0.6865. Getting below that moving average would be the first break since September 13. Hence its importance from a technical perspective
For the NZDUSD, its fall has now taken the price below its 100 and 200 hour moving averages today at 0.6320 and 0.6394 respectively. The 200 hour moving average at 0.6394 is now a close risk level. It would take a move back above to take some of the short term bearishness out of the pairs’s technicals.
On the downside the 38.2% retracement of the move up from the September low comes in at 0.62727. Getting below it and the 0.62668 level would open the door for further negative price action.
The 50% and the rising 100 bar moving average on the 4-hour chart would be targeted at 0.62407 and 0.62322 respectively.
This article was written by Greg Michalowski at www.forexlive.com. Source