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FXstreet.com (Barcelona) - Like equities, commodity currencies were quite resilient despite the event risk over the past week, breaking the 1.02/1.03 and 0.8100 handles for the AUD/USD and NZD/USD, respectively, and posed to extend the short term upside above breakout points as there is little evidence of a sustained reversal at this point. "Still, a note of caution is warranted as the overbought extremes suggest sustained upside from current levels could be a tough order particularly as the next line of key resistance levels are in focus", wrote JP Morgan analyst Niall O'Connor, monitoring the 1.0640/1.0695 zone for AUD/USD and the 0.8230/0.8320 for the NZD/USD, resistances that should pause both pairs' rallies for a while.

"The 1.0400 area should now act as key initial support, while a break below the 1.0280 area (200-day MA and June-August uptrendline) would suggest a short term top is in place and the current overbought setup is finally registering with the price action", added O'Connor, while he points to 0.8060/30 support for the NZD/USD ahead of a short term bearish shift below 0.7900/0.7875.

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