fbpx
usd

4 Global Market Updates- 18 November, 2022

In this article, we have covered the highlights of global market news about the EUR/USD, USD/CAD, USD/JPY and AUD/USD.

EURUSD Price Analysis: Bulls remain optimistic over 1.0300 due to RSI divergence inside a neighboring triangle.

Before Friday’s European session, intraday gains for the EURUSD are reduced to around 1.0370. As a result, the major currency pair retreats from the immediate symmetrical triangle’s resistance line and braces for its fifth straight weekly rise.

But to give buyers optimism, a concealed bullish divergence between the EURUSD price and the RSI (14) joins a two-week-old rising trend line.

Nevertheless, the quotation indicated higher lows on the chart, while the RSI indicated lower lows, indicating that the EURUSD bears are losing momentum.

However, for the bulls to maintain control, an upward break of the indicated triangle’s top line, around 1.0385, is required.

The run-up for the pair might then aim for the monthly high and peaks recorded in late June, which are around 1.0480 and 1.0615, respectively.

On the other hand, the triangle’s support line limits the Euro pair’s near fall to about 1.0315, followed shortly by round number 1.0300.

An upward-sloping support line from November 04, at the 1.0200 level, also functions as a downside filter.

One must consider the possibility of a decline toward the swing high at 1.0095 from November 2008 if the EURUSD continues bearish beyond 1.0200.

USDCAD defends 1.3300 to stop a four-week decline, despite oil prices rising.

Around 1.3300 early Friday morning, USDCAD accepted offers to reduce the first weekly gain in five weeks. In doing so, the Loonie pair draws cues from the US Dollar’s general decline and the price correction of WTI crude oil, Canada’s principal export.

usd

Despite this, according to a Reuters poll, the US Dollar Index (DXY) experiences slight losses at 106.40 as cautious optimism on US government action and the market’s expectations for the Federal Reserve’s (Fed) next move, reduce demand for the dollar as a safe haven.

According to CNBC, the Biden administration will seek the Supreme Court to reinstate the student loan debt relief program. According to another Reuters poll, the Federal Reserve will downshift in December to deliver a 50 basis point (bps) interest rate boost. Still, the biggest threats to the present picture are a lengthier period of US central bank tightening and a higher policy rate peak.

USDJPY Price Analysis: Bulls seeking to breach crucial hourly resistance structure

As the Asian session progresses, USD/JPY is seeing some pressure and printing negative for the day. So far, the price has ranged between a high of 140.49 and a low of 140.01.

However, after a little miss on US inflation last week that was overshadowed by hawkish remarks from several Federal Reserve officials who said that one report would not be sufficient to justify a pivot, the US Dollar index DXY is now stabilizing. The price remains constrained, but a breakthrough might be imminent in either direction.

AUDUSD Price Analysis: Bounces off 50-EMA, but rebound from 0.6730 has to be validated

As the bears take a break after a two-day slump during Friday’s Asian session, AUDUSD stays modestly bought at 0.6700.

usd

As a result, the Aussie pair maintains the late Thursday comeback from the 50-bar EMA to reduce the first weekly loss in five weeks.

Nevertheless, the quote’s most recent upward movement is close enough to a downward-sloping trend line from Wednesday, at around 0.6730, to persuade buyers.

After that, it’s possible for a run-up toward updating the monthly top, which is presently at 0.6800, to occur.

However, the stable Relative Strength Index (RSI), set at 14, and the negative warnings from the Moving Average Convergence and Divergence (MACD), keep the selling optimistic.

Consequently, it is more probable that the quotation will draw back towards the 50-EMA, at the latest, around 0.6640.

But it’s essential to remember that AUDUSD weakening above 0.6640 may soon push the pair toward the 50% Fibonacci retracement level of the upward movement from November 03–15, which is close to 0.6535.

The 200-EMA and an ascending trend line from November 3, which are now at 0.6520 as of this writing, might then provide a test to the AUDUSD bears.

Overall, until it falls below the 0.67360 thresholds, the AUDUSD price is still on the radar of the bears.

Please click here for the Market News Updates from 17 November, 2022.

LinkedIn
Share
Telegram
WhatsApp