NZDUSD and AUDUSD Stay Bearish for January

The New Zealand and Australian Dollars have both seen notable corrective rebounds to the upside versus the US Dollar in early 2017.

However, the significant bearish sell offs for NZDUSD and AUDUSD in November and December 2016, leaves bearish risks intact into this week (mid-January) and also for the month.

Furthermore, the setback seen on Friday (6th January) after the US Employment report, leaves, reinforces the immediate bear bias.

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NZDUSD

A Friday recovery failure back from resistance at .7043, ahead of the .7050 level, to signal a small Double Top pattern, shifting the risk into Monday to the downside.

For Today:

  • We see a downside bias for .6950; break here aims for .6906, maybe .6881/67.
  • But above .7006 opens risk up to .7043/50.

However, the mid-November breakdown through the multi-month “neckline” of the Head and Shoulders top from July, signalled an intermediate-term bearish shift, confirmed below .7030.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to .6800.
  • Below here targets .6676/64, .6572/41 and maybe as deep as .6343.

What Changes This? Above .7239 signals a neutral tone, only shifting positive above .7403.

 

Daily NZDUSD Chart

NZDUSD Chart

AUDUSD

A recovery failure on Friday, setting back from resistance at .7357, to signal a small topping structure and shift the bias back to the downside into Monday.

For Today:

  • We see a downside bias for .7279; break here aims for .7229, maybe .7193.
  • But above .7331 opens risk up to .7357.

However, the mid-November break of .7438 completed a multiple peak topping pattern, which leaves an intermediate-term bearish theme.

Short/ Intermediate-term Outlook – Downside Risks:

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

What Changes This? Above .7630 signals a neutral tone, only shifting positive above .7778.

Daily AUDUSD Chart

AUDUSD 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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