In this article, we have covered the highlights of global market news about the GBP/USD, AUD/USD, USD/JPY and NZD/USD.
GBP/USD Price Analysis: During a three-day decline, sellers hit the 1.2100 support.
The key support level of 1.2100 is the focus of the GBP/USD bears’ fight as early Wednesday morning in London approaches. As a result, the Cable pair declines for the third day.
However, the MACD indicator’s impending bear cross suggests that the quotation might decline lower. The 200-DMA and an upward-sloping trend line from November 10 prevent the quotation from falling further at this time.
If the GBP/USD bears successfully post a daily close below 1.2100, the June resistance line that has since turned into support, located at 1.1965, may act as a draw for selling. The 1.2000 psychological magnets may serve as a bolster during the fall, but it should be emphasized.
The 61.8% Fibonacci retracement level of the May-September fall, close to 1.1780, will be in focus when watching for more weakening in the GBP/USD market if, at all, the price cannot go higher from 1.1965.
AUD/USD: It seems that the upward push has subsided – UOB
Market Strategist Quek Ser Leang and Senior FX Strategist Peter Chia of UOB Group believe that the short-term direction of AUD/USD is currently sidelined inside the 0.6600-0.6815 area.
24-hour view: “Despite trading between 0.6681 and 0.6744, our forecasts for the “rapid decrease in AUD to extend” did not come to pass. Even if the primary support around 0.6640 is unlikely to be threatened, the risk seems somewhat biased to the downside. The downside risk remains as long as the Australian dollar does not rise over 0.6740 (a little resistance level around 0.6720).
Within three weeks, “We remain committed to yesterday’s position” (December 06, spot at 0.6705). As previously said, the recent rising impetus has subsided, and for the time being, the Australian dollar is expected to stabilize between 0.6600 and 0.6815.
USD/JPY tends to go up toward 138.00, even though options market signals are negative.
In the early hours of Wednesday in Europe, bids for the USD/JPY increase to renew the intraday high around 137.60. In doing so, the Yen pair reflects the risk-on attitude of the market despite a light calendar.
The pair price run-up, however, contrasts with the indications from the options market. However, the one-month risk reversal (RR) for the Yen pair, which measures the ratio between call and put premiums, flashes -0.325 at the earliest, preparing for the largest weekly print in three weeks. As a result, the weekly RR decreases for the third week. Furthermore, the daily RR prints the -0.435 number at the latest, breaking a two-day rise.
The recent risk-on inclination seems to have been sparked by China’s introduction of the new Covid policy.
The opinions of several Bank of Japan officials may also support the USD/JPY (BOJ). Toyoaki Nakamura, a member of the BOJ Board, has said that it is “premature to modify monetary policy at this time while service prices remain low.”
NZD/USD Price Analysis: The price remains protective above the monthly support line at 0.6300.
As bears play about with the short-term crucial support line in the early hours of Wednesday, the NZD/USD oscillates around 0.6320-30. However, the Kiwi pair’s inability to breach the 21-SMA and the bearish MACD indications point to more declines in the quotation.
The chart’s bearish RSI divergence also gives sellers optimism. When the pair makes higher lows but the RSI, which is set at 14, does not, the oscillator-price divergence may be seen. This signals that momentum is weak even if prices are still rising.
As a consequence, a negative move may occur at the first opportunity. However, an upward-sloping support line from November 10 at 0.6315 is of particular interest since a breach to the downside of this level might catalyze the NZD/USD south-run.
In such a situation, bears may be drawn in before marking the previous monthly low of 0.5740, which was recorded at lows on November 28 and 17, respectively, around 0.6155 and 0.6065.
On the other hand, buyers of NZD/USD must be persuaded by a clear breach of the 21-SMA level at 0.6360.
Please click here for the Market News Updates from 6 December, 2022.