Commodity Currencies such as and AUD and NZD fell sharply today amid risk aversion, and a strong USD. Let’s take a look at the AUD/USD, NZD/USD, as well as Gold (XAU/USD) to see where the current decline might take these instruments.
AUD/USD maintained its bearish trend and momentum by holding below September’s falling trendline. It has not broken below the March low and the 2013-low, and has the 2014-low at 0.8660 in sight. NZD/USD began the week in consolidation, but fell after tagging September’s falling trendline and the 50-period SMA in the 4H chart. It is also cracking the 200-week SMA, and cracked the 2014-low. Still the weekly chart shows some bullish bias, and we should anticipate some consolidation as price approaches the 0.80 handle with the weekly RSI dipping into oversold territory. Gold reversed a bullish attempt and remains bearish.There is some room until the 2013 and 2014 lows around 1180.20. The weekly RSI confirms bearish momentum, but is not oversold, so it also suggests some further downside before a consolidation period.
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