The AUD/USD and NZD/USD Both Have More Upside In Them
Rowan Crosby • 1 min read
In what seems like a bit of an about-face, it’s been the AUD and the NZD that have been quite bullish in the last few weeks.
Over the course of the year, the FX Leaders Team have been making some nice profits from both of these two currencies as they have been in bear mode. However since the tax bill got pushed through, the USD has weakened and it’s been the two commodity currencies that have led the charge.
Just to look at the charts, they are both quite similar. We are currently at overhead resistance in both but the thing that stands out is that we have a fair bit of room until the next resistance level.
What that suggests is that we can move higher quite easily. That’s assuming we can break this current level. And that is a big if. Fundamentally I would say that both should be quite weak. I also suspect the USD will have a long-term bid to it going forward thanks to Trump’s tax reform.
Keep watching the current level in both the Aussie and Kiwi and if we can hold, the risk/reward looks quite good.