Both AUD and NZD could be topping against USD. The upper chart shows AUD/USD. After testing the long term resistance line at the 110 area, we are now at support near 104.50 a break below this support will be the first real indication that a firm top is in place.
Both my proprietary indicator (red dotted line) and the MACD indicator is showing negative divergence. This in itself is not enough to call the top, but it is a clear warning that the uptrend is getting tired.
NZD/USD also tested it's resistance line at 83. It was the third time this former support line acted as resistance line. We can see a major negative divergence at both my proprietary indicator and the MACD indicator, both calling for a major trend change. Short term a break below 79.68 and more importantly 77.51 will confirm that an important top was found at 83.
The breakout from the Shanghai Composite should also be a warning, that both AUD and NZD could face headwinds in the coming weeks/months.
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