I’ll let the charts do the talking here.
AUD/USD daily chart
In the case of AUD/USD, the pair has been struggling to get past its 100-day moving average (red line) since the start of the month. For today, buyers are not only inching past that but also contesting the 200-day moving average (blue line) at 0.6563 currently. That’s a big level on the charts as a push above that will shift the momentum back to the buyers.
The pair has been caught in limbo in the past few weeks, trading in and around the 0.6500 mark. As such, to get a potential technical break will be a welcome one for price action to let loose. Taking that into consideration, keep a close eye on the daily close as that will be the one to vindicate the make or break conviction in the pair next.
NZD/USD daily chart
As for NZD/USD, the pair briefly touched a five-week high of 0.6179 and is trading just under that now. Of more importance, buyers look to be targeting a potential break of daily resistance around 0.6150-73.
So far, the daily closes in the past month or so have struggled to even get past the 0.6150 mark. And looking at price action in general, there is some consolidation between 0.6050 and 0.6150 mostly.
Thus, a firm break above the technical ceiling highlighted could breathe fresh life into the pair in recovering the January drop.
It all comes down to Wall Street to confirm any follow through in the price action we’re getting at the moment.