Both NZD/USD And AUD/USD Post Solid Rebounds Since Brexit Sell Offs
Steve Miley | Jun 30, 2016 05:20AM ET
Both NZD/USD and AUD/USD Post Solid Rebounds Since Brexit Sell Offs
The New Zealand and Australian Dollars were displaying bullish outlooks versus the US dollar and aiming higher into the key UK vote on EU Membership last Thursday (23rd June).
Despite the immediate sell offs after the vote, with a general “risk off” move, the subsequent rebounds by both NZD/USD and AUD/USD into late June (this week) have highlighted an ongoing upside bias.
NZD/USD retains an underlying bullish trend theme, whilst AUD/USD is indicating a positive tone within a still broader range environment.
NZD/USD
A still better rebound Wednesday to build on the Tuesday bounce from ahead of key .6966/60 support (off .6977), to push through resistance at .7082/85 and .7114 to shift the bias higher for Thursday.
For Today:
- We see an upside bias for .7136 and .7158; break here aims for .7207/27.
- But below .7053 opens risk down to .7014.
However, we still point out risk for a push below the key .6960 level for a switch in the intermediate-term outlook from bullish to a neutral range theme.
Short/ Intermediate-term Outlook - Upside Risks: A previous shift to an intermediate-term bullish tone above .7054.
- We see a positive tone with the bullish threat to 7298.
- Above here targets 7396/7413 and .7564.
What Changes This? Below .6960 signals a neutral tone, only shifting negative below .6676.
Daily NZD/USD Chart
AUD/USD
A still better rebound Wednesday again from ahead of .7303 and .7284 supports (from .7340) to push through .7415/16 resistance and shift to a positive bias into Thursday.
For Today:
- We see an upside bias for .7456; break here aims for .7510, maybe .7559.
- But below .7408 opens risk down to .7379, maybe .7340.
Short/ Intermediate-term Range Parameters: We see the range defined by .7719 and .7141.
Range Breakout Challenge
- Upside: Above .7719 aims higher for .7835/49/78 and .8000.
- Downside: Below .7141 sees risk lower for .7106/.7000/.6971 and .6825.
Daily AUD/USD Chart
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