Technical Outlook – GBPUSD, AUDUSD and NZDUSD

On Thursday, the US Dollar weakness against GBP accelerated after the BoE, in its Financial Stability report, tightened mortgage lending rules. Also, the US Dollar continued weakening against AUD and NZD in wake of lower-than-expected US economic data. Given the backdrop, here is a technical outlook on GBPUSD, AUDUSD and NZDUSD.

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GBPUSD

Following the release of BoE’s Financial Stability report, the pair rebounded from 1.6950-40 intermediate support to reclaim 1.7000 mark. A weekly close above 1.7000 would support the prospects of further appreciation in the up-coming week. Moreover, formation of a continuation chart pattern, Pennant, on 4-hour chart, indicates continuation of the strong bullish momentum. Hence, a move above 1.7050 seems to trigger further up-move towards 1.7120 resistance area, marked by the upper trend-line resistance of an ascending channel formation on daily chart. However, should the pair fail to provide any follow-up move and drop back below 1.6950-40 support area, the pair then seems more likely to drift lower to test 1.6900 support area, with the short-term corrective move expected to continue till 1.6810-1.6800 zone, representing the lower trend-line support of the ascending channel.

 

AUDUSD

The pair continues facing headwind near a very strong resistance area near 0.9440-60 zone. However, on daily charts the pair has confirmed a break above a descending trend-line resistance and on 4-hour chart has been finding good support at an ascending trend-line. These set-up suggests that the pair is more likely to break past the 0.9440-60 resistance area and continue with its upward trajectory in the near-term towards 0.9600 level, with an immediate upside seen till 0.9510-30 horizontal resistance zone. On the downside, 0.9330 area might act as immediate strong support and hence a decisive break below 0.9330 could possibly negate the near-term bullish outlook for the pair.

NZDUSD

The pair managed to register a fresh 2014 closing high on Thursday and after nearly testing 0.8800 handle on Friday, the pair is witnessing some pull-back from the upper trend-line resistance of an ascending channel formation on weekly chart. Considering that the pair might continue to confront resistance near 0.8800 handle, the pair could possibly witness some corrective move towards 0.8680-60 horizontal support zone. Any near-term up-move beyond 0.8800 could possibly be capped at 0.8840-50 resistance zone, comprising of July 2011 highs and 61.8% Fib. expansion level. However, medium-term prospects for the pair still remains bullish and hence traders would possibly utilize the dip to initiate fresh long positions.