Forex Video Briefing (10/31) – AUD/USD and NZD/USD

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[videojs mp4=”http://s3.amazonaws.com/fxcom-amazon-s3/2014/11/BearishContinuationMode.mp4″]
Forex Video Briefing (10/31) – AUD/USD and NZD/USD

The AUD/USD has been consolidating in October, after a fresh low on the year at 0.8642. This consolidation has come up to 0.8911 this week, but the FOMC’s announcement of ending QE sent the USD up across the board ,and AUD/USD showed us a bearish engulfing candle. After a brief pullback, it seems like this candle is sticking, which signals bearish continuation, or at least a test of the 0.8642 low on the year.

If AUD/USD breaks into new lows on the year, we have the 0.8577 support pivot down to the 0.85 psychological handle as the first area to look for buyers.

The NZD/USD’s daily chart shows a market that has been consolidating between roughly 0.7707 and 0.8033. Note that price remains under the 200-, 100-, and 50-day SMA so the bearish bias is intact. The bearish momentum is maintained as the daily RSI has tagged 20, and then held below 60, even below 50.

Price action sine the 0.8033 high has been dominated by strong bearish candles. The FOMC-day was a bearish engulfing candle, which signaled bearish continuation. Now ,after a brief pullback, it still looks poised to test that 0.77-0.7710 area. Just below 0.77, we have the 2013-low at 0.7683. A break below that opens up the 0.7450-0.75, 2012-lows.