AUD/USD and NZD/USD both rebounded after sellers failed to sustain breaks below key technical support levels. Buyers in both pairs now need to clear nearby resistance to confirm the reversals, while a renewed slide back through the broken support would hand sellers control again.
The commodity currencies moved in tandem, with NZD/USD and AUD/USD rebounding after sellers failed to hold breaks below important support. Neither pair could sustain its downside move, and short covering pushed both back higher.
NZD/USD fails to hold the breakdown
NZD/USD sellers pushed below the lower trendline and the swing area between 0.5761 and 0.5777, but could not keep price under those levels. The failed break triggered a quick rebound, with the pair moving back toward 0.5785.
The recovery favors buyers, but resistance sits close by. The underside of the broken trendline caps the pair near 0.5791. Above that, the 50% retracement at 0.5806 and the falling 100-hour moving average near 0.5822 become the next upside targets.
Sellers needed to break support and stay below it, but they failed, forcing shorts to cover. Buyers must now reclaim the broken trendline to show they can take back control. Stay below 0.5791 and sellers keep the short-term advantage; move above it and hold, and the failed breakdown becomes more meaningful.
A renewed drop below 0.5777, followed by 0.5761–0.5764, would put sellers firmly back in charge.
AUD/USD buyers respond after another failed break
AUD/USD gave sellers their own shot: price broke below the 38.2% retracement at 0.71168, but momentum faded after comments from President Trump and as oil prices moved off their highs. The dollar sold off as a result, helping AUD/USD rebound sharply.
The recovery took price back above the swing area between 0.71208 and 0.71285, as well as the swing level near 0.71398, which now marks the close risk area for buyers. Staying above these levels would keep the rebound alive. On the topside, resistance comes in near 0.71718; a move above that area would strengthen the bullish bias and open the door toward the falling hourly moving averages.
For buyers, the key is building on the failed downside break by staying above 0.71398. More conservative traders need the 38.2% retracement at 0.71168 to stay broken, and a move back below that level would put sellers more firmly back in control.
Breaking a level draws attention, but staying through it confirms control. Sellers made the break in both pairs but could not sustain it.
Source: Investinglive.com
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