AUDUSD and AUDNZD: AUDUSD remains weak at the support level

• Expectations that the AUDUSD could start a recovery faded already in the first hours of the Asian session. 
• During this morning’s Asian trading session, AUDNZD moved in the 1.11200-1.11350 range. 

AUDUSD chart analysis

Expectations that the AUDUSD could start a recovery faded already in the first hours of the Asian session. The pair only managed to reach the 0.65700 level and stop there. After that, a bearish consolidation was initiated and a drop to the 0.65400 level. We were hoping for a return to the bullish side in the EU session, but the Australian dollar continued to weaken and turned back towards this morning’s support zone.

Potential lower targets are the 0.65300 and 0.65200 levels. Last week’s low is a step lower at the 0.65138 level. For a bullish option, we need a positive consolidation and growth above the 0.65600 level. This is where AUDUSD could find support from the EMA 50 moving average before continuing further recovery. Potential higher targets are the 0.65700 and 0.65800 levels.

AUDNZD chart analysis

During this morning’s Asian trading session, AUDNZD moved in the 1.11200-1.11350 range. With the start of the EU session, the pair was increasingly bullish, and we saw a break above the 1.11400 level. With this move, a new weekly high was formed, and we broke above last week’s high. We expect to see a continuation of today’s bullish consolidation and create a new higher high.

Potential higher targets are 1.11500 and 1.11600 levels. For a bearish option, we need a negative consolidation and a pullback of AUDNZD down to the 1.11200 weekly open price. A break below will show that the pair does not have the strength to hold on to the bullish side and that a pullback will follow. Potential lower targets are 1.11000 and 1.10800 levels. The EMA 200 moving average could stop the pullback below the 1.11000 level.