Both Australian and New Zealand Dollars Send Bearish Signals



We now apply our Forex market technical analysis to the AUDUSD and NZDUSD currency FX rates, with both these Forex markets shifting to far more bearish themes through the middle of November.
For AUDUSD, the break below the September low at .7438 has completed an intermediate-term topping structure, potentially a five peak top, to shift the intermediate-term outlook to more bearish and leave the risk for a deeper correction into November and late 2016.
For NZDUSD, the Forex forecast is for a far more negative theme having completed a multi-month Head and Shoulders topping pattern. Again, the threat for the second half of Q4 2016 is for a more significant negative tone.


Another push to the downside on Thursday, to probe below critical support at .7438, reinforcing the plunge lower Wednesday through the key .7507/02 target area, signal an intermediate-term bearish shift.
In addition, this negative price action leaves the risk lower into Friday

For Friday:

  • We see a downside bias for .7400 then .7371 and maybe .7334.
  • But above .7472 aims for .7497 and opens risk up to .7561.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to .7284 and .7141.
  • Below here targets .7000, .6971 and .6825.

Daily AUDUSD Chart




A rebound failure Thursday, setting back from our flagged .7111 resistance, to push down through the multi-month “neckline” to the Head and Shoulders top from July.
Furthermore, an intermediate-term bearish shift has been confirmed by the break below .7030.
This activity also sets a downside bias into Friday.

For Friday:
We see a downside bias through critical support at .7030; through here would target .7000, maybe closer to .6948.
But above .7111 aims for .7144/50 and opens risk up to .7198.

Short/ Intermediate-term Outlook – Downside Risks:
The break of .7030 now sets the intermediate-term risk lower for .6948, .6800 and .6676/64 targets.

Daily NZDUSD Chart


Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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