The AUDUSD has shown volatile price action, fluctuating around the 100-bar and 200-bar moving averages on the 4-hour chart. Currently, it trades above both averages, approaching the swing area between 0.6326 and 0.6336, with a potential breakout aiming for the 100-day moving average at 0.6356.
A failure to break this resistance could result in sellers re-entering the market, with initial support at 0.6245 and a significant level between 0.6162 and 0.61779. The NZDUSD has also experienced choppy movements but is nearing weekly highs, having found support at the 200-bar moving average at 0.56804.
Critical Support Zone
This level has established a critical support zone, maintaining a bullish bias as long as prices stay above it. The 100-day moving average at 0.5750 is currently being tested, where a sustained break could lead to further targets at 0.5771 and 0.5796, while a drop below it would shift momentum towards the 200-bar MA.
The Australian dollar has been struggling to find a definitive direction as traders assess whether the recent surge above short-term moving averages on the four-hour chart can be sustained. Price movement around these levels has been far from stable, with the currency shifting between gains and pullbacks, making it difficult to establish a clear trend. The latest push higher has brought the pair close to a well-defined resistance band between 0.6326 and 0.6336. If upward momentum continues, the next test lies at the 100-day moving average of 0.6356.
However, resistance should not be ignored. If traders show hesitancy in pushing beyond this threshold, there is the possibility of a reversal, with sellers gaining control once again. The first area of interest on the downside is around 0.6245, a level that previously acted as both support and resistance. Should downward pressure accelerate, the zone between 0.6162 and 0.6179 becomes increasingly relevant, as historical price action suggests this range is capable of slowing declines.
Meanwhile, the New Zealand dollar has followed a similarly inconsistent path, but recent trading suggests buyers are attempting to consolidate their position. It has been holding above its 200-bar moving average on the four-hour timeframe, which sits near 0.5680. This level has become an important reference point. As long as prices remain above it, the upside remains viable. Buyers have been attempting to push the currency through its 100-day moving average near 0.5750, a point where momentum could pick up if sustained.
Potential Upside Targets
In the event of a continued move higher, further targets emerge, with 0.5771 and 0.5796 being the next zones of interest. These levels have previously acted as barriers to upside movement, and they will likely attract attention from those looking to exit long positions or initiate short trades. On the flip side, if price action weakens and dips below 0.5750, attention would shift back towards the support provided by the 200-bar moving average. A failure to hold above this indicator could open the door for deeper losses.
