As geopolitical uncertainty and mixed economic signals dominate global markets, traders are closely monitoring major currency pairs like AUD/USD, NZD/USD, and USD/JPY. Despite volatility, bullish setups are forming, offering strategic entry points for traders.
🇦🇺 AUD/USD: Bullish Momentum Builds Within Expanding Channel
The Australian Dollar (AUD) saw a brief dip earlier this week, pressured by rising tensions between Israel and Iran. Risk sentiment weakened temporarily, sending traders into safe-haven assets and causing AUD/USD to retreat near key support.
However, market mood improved after Iran called for a ceasefire and regional diplomacy, stabilizing the pair. Despite lingering conflict risks, the technical trend remains bullish, with AUD/USD trading inside an ascending broadening wedge on the 4-hour chart.
🔍 Key Levels to Watch:
- Immediate resistance near 0.66
- Break above could lead to 0.67+
- Support holds around 0.6450
📅 All eyes are now on Australia’s upcoming employment data, which could strengthen expectations of a more hawkish RBA stance. Still, global headlines may have the final say on short-term direction.
🇳🇿 NZD/USD: Strong Breakout Confirms Bullish Sentiment
The New Zealand Dollar is gaining momentum, with NZD/USD breaking above the key 0.6020 level and showing signs of continued strength. The breakout was supported by a series of rounding bottom patterns, signaling a reversal from recent lows.
Technical charts show the pair recovering from the 0.55 zone, and bulls have taken control above 0.5850, reinforcing the bullish case.
📈 Price Outlook:
- Current bullish momentum supported by improved global risk appetite
- Eyes now on resistance zones between 0.61 and 0.62
If the bullish trend continues, NZD/USD could outperform in the short term, especially if U.S. rate expectations shift dovishly.
🇯🇵 USD/JPY: Rebound Lacks Strength, Bearish Wedge Persists
The Japanese Yen remains in a consolidation phase as USD/JPY trades inside a descending broadening wedge, reflecting mixed sentiment. The pair bounced from the 143 area, but upside moves have stalled below the 146.00 mark.
The pair continues to be weighed down by:
- Safe-haven flows into the Yen amid Middle East concerns
- Uncertainty surrounding the Federal Reserve’s rate policy
- Market expectations of a 25 bps rate cut by September
🔻 Key Resistance: 148.30
🔻 Bearish Bias Holds below this level
🔻 Support remains near 142.00
Should U.S. retail sales data beat expectations, the Dollar could regain strength. Otherwise, rising global risks may favor Yen inflows and drag the pair lower.
🧠 Conclusion: Key Trading Takeaways
- AUD/USD remains bullish as long as it holds above short-term support, with a breakout above 0.66 likely to open the door to 0.67.
- NZD/USD is showing stronger momentum, especially after clearing the 0.6020 hurdle.
- USD/JPY remains trapped in a bearish wedge, with any bounce capped below 148.30 unless macro factors turn.
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