**AUD/USD and NZD/USD Shift to Bullish Territory: Is the Rally Set to Continue?**
*Based on original analysis by DeltaStock.com for Action Forex, with additional market insights*
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The forex market has recently seen notable bullish moves in the Australian Dollar (AUD) and New Zealand Dollar (NZD) against the US Dollar (USD). Both the AUD/USD and NZD/USD currency pairs have rallied past critical resistance points, sparking questions about whether their upward momentum can be sustained in the near to medium term. This detailed analysis explores the technical and fundamental drivers behind the rallies, assesses current market sentiment, and looks at potential scenarios for the coming weeks.
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## Market Context: Dollar Weakness and Risk Appetite
Both AUD and NZD are considered risk-sensitive currencies, often moving in tandem with shifts in global risk appetite. Over the past two weeks, risk-on sentiment has prevailed as market participants have grown more confident that central banks, especially the US Federal Reserve, may take a less aggressive approach to monetary policy. This backdrop has fueled broad-based USD weakness in the forex markets.
**Key Contextual Factors:**
– Receding fears of aggressive US interest rate hikes
– Global equity market stabilization, supporting higher-yielding currencies
– Ongoing improvement in key commodity prices, supporting commodity-linked currencies like AUD and NZD
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## Technical Analysis: AUD/USD
### Current Price Structure
The AUD/USD pair recently overcame major resistance levels, pushing through 0.6650 and setting sights on the psychologically important 0.6700 handle. This rally positions the pair at its highest levels since January 2024, signaling a potential medium-term trend reversal.
**Daily Chart Observations:**
– The pair broke above a well-established descending trendline, shifting the technical landscape from bearish to bullish.
– The 50-day and 200-day Simple Moving Averages (SMA) show a pending bullish crossover, adding technical confirmation to the move.
– Momentum indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both trending upwards, with the RSI comfortably above 60, suggesting buyers remain in control.
### Key Support and Resistance Levels
– **Immediate Resistance:** 0.6700 (psychological level), followed by 0.6745 (March swing high)
– **Major Hurdle:** 0.6800 (December 2023 high)
– **Initial Support:** 0.6650 (recent breakout point)
– **Stronger Support:** 0.6600 (horizontal level aligned with rising 50-SMA)
### What Needs to Be Watched
Technical traders will monitor whether AUD/USD can solidify closes above the 0.6700 region. Sustained trading above this level would indicate growing bullish conviction and open the door to the year-to-date highs in the 0.6780-0.6800 zone. Conversely, failure to maintain post-breakout momentum
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