• Aussie bulls are confident over the breakout of an Inverted Head and Shoulder pattern.
• A bull cross, represented by 20 and 50-EMAs adds to the upside filters.
• The RSI (14) has shifted into a 60.00-80.00 range, which signals more gains ahead.

The AUD/USD pair has witnessed a minor pullback after hitting a high of 0.7072 in the New York session. Earlier, the aussie bulls displayed a firmer rally after recording a fresh yearly low of 0.6829 last week.

A breakout of an Inverted Head and Shoulder chart pattern on an hourly scale has indicated a confident bullish reversal. The formation of the above-mentioned chart pattern denotes a prolonged inventory distribution in which the institutional investors purchase inventories from the retail participants.

A bull cross of 20- and 50-period Exponential Moving Averages (EMAs) at 0.6992 indicates a firmer rally ahead.

Also, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which signals more gains going forward.

A pullback towards the 20-EMA at 0.7030 will be a bargain buy for the market participants that will send the asset towards the round level resistance at 0.7100. The occurrence of the same will drive the asset further towards May 3 high at 0.7148.

On the flip side, the greenback bulls could regain control if the asset drops below Wednesday’s low at 0.6948. This will drag the asset towards Monday’s low at 0.6872, followed by yearly lows at 0.6829.

AUD/USD hourly chart

• NZD/USD bulls are moving in on a critical daily resistance.
• The price has corrected the hourly bullish impulse to the 38.2% Fibonacci.
• There are prospects of a deeper run to test the hourly 61.8% golden ratio that aligns with prior resistance.

NZD/USD is higher entering into early Asia on Friday.  There is some hesitation in the markets as to the prospects of a hard landing in the US which has stripped the US dollar of some of its appeal. Technically, the NZD is attempting to break higher:

NZD/USD prior analysis

The weekly bearish impulse has been in need of a correction. The correction is underway and this could correct as far as the prior support and beyond 0.64 the figure.

The build-up of daily resistance was being challenged which supported the bullish outlook:

The price was attempting to break through the resistance, with eyes set on the 38.2% ratio at 0.6350 that guarded a 61.8% ratio where prior support near 0.6430 was eyed.

NZD/USD live market 

The price has moved in on the resistance as illustrated above, respecting the forecasted price trajectory along the way there. There are still prospects of a continuation to test the 61.8% fully but 0.64 the figure will need to give way as per the following analysis on the hourly time frame:

NZD/USD H1 chart

The price has corrected the bullish impulse to the 38.2% Fibonacci but the correction has strength in the price action, so there are prospects of a deeper run to test the 61.8% golden ratio that aligns with prior resistance.