In this article, we have covered the highlights of global market news about the EUR/USD, AUD/USD, GBP/USD and USD/CAD.
EUR/USD rises beyond 100 and 200 HMA confluence
Despite a slow Wednesday morning in Europe, the pair maintains a defensive position at 1.0645 and displays a three-day winning streak.
The leading currency pair validates the prior rebound off the important Hourly Moving Averages (HMAs) in a short-term rising wedge bearish chart pattern by doing so.
It’s important to note that the approaching bull cross on the MACD and the quote’s continued trading above the confluence of the 100 and 200-HMA, at 1.0620, provide the buyers of the EUR/USD reason for optimism.
The quote’s U-turn from the 1.0580-75 horizontal support region also benefits the EUR/USD bulls.
For the pair buyer’s conviction, however, a rejection of the three-day-old rising wedge is required. Successful trading over 1.0675 may thus delay the selling.
The next move is likely to be an increase to the monthly high set on December 15 at 1.0735.
The 1.0786 top from May and the round number 1.0800 will be in focus if the EUR/USD market stays stronger beyond 1.0735.
On the other hand, a break below 1.0630 would validate the bearish rising wedge pattern. However, the convergence of the above HMAs might provide a problem for the EUR/USD bears under 1.0620.
AUD/USD bulls hail ‘golden cross’ to approach resistance around 0.6765
The AUD/USD pair makes a new intraday high at 0.6755 on Wednesday during the first European session, reversing the previous day’s decline from the two-week high.
In doing so, the Aussie pair supports the bullish moving average crossing during slow trading days brought on by the Western world’s end-of-year holiday spirit.
The 200-HMA was penetrated by the 50-HMA the day before, which painted the “Golden Cross.” The positive indications from the hourly moving averages are also supported by the MACD (HMAs).
The quotation is thus ready to test a two-week-old resistance line around 0.6765. A further trend line resistance restrains the pair’s upward from December 16, which is at 0.6780.
The 0.6800 round number and 0.6820 barriers may test the bulls if the Australian pair continues stronger above 0.6780 before guiding them toward the monthly high at 0.6895.
GBP/USD price analysis: 1.2000 bounces tease buyers
As Wednesday’s London opening approaches, GBP/USD attracts bids to recoup the early losses around 1.2030. By doing so, the Cable pair tests the negative bias displayed on Tuesday and marks the third recovery from the psychological magnet of 1.2000.
Although the pair’s near fall is constrained by a week-old horizontal support at 1.2000, recovery is unlikely until the quote overcomes a downward-sloping resistance line from December 19, close to 1.2090 by the time of publication.
However, the Cable pair’s initial recovery movements are limited by the 1.2050 support level and the 100-HMA level above 1.2070.
It’s important to remember that the 200-HMA obstacle, which is at 1.2140 at the earliest, will need to be broken for the GBP/USD pair’s upside to continue over 1.2070.
The monthly low of 1.1992 is followed by a clear negative breach of the round 1.2000 level, which will halt further short-term falls in the GBP/USD pair.
USD/CAD holds over 1.3500 despite lower Oil prices
The USD/CAD pair posts modest gains at 1.3530 on the first positive day in three for the Loonie pair as bulls and bears compete for control.
The current decline in oil prices and the US Dollar recovery may be attributed to the quotation. However, the USD/CAD traders are controlled by the festive spirit, a light schedule, and fewer macros.
In the face of subdued US Treasury bond rates, the US Dollar Index (DXY) struggles to hold onto recent advances of around 104.25, eroding the recovery from a one-week low. This confirms the recent conflicting US statistics and the varied fears over the Fed’s future movements, according to the greenback’s index against the six most important currencies. However, waning confidence over China’s Covid circumstances and declining worries about the US recession seem to keep DXY bulls optimistic.
An economist from the Federal Reserve Bank of San Francisco’s economic research division recently disregarded the possibility that the US economy would slow down for at least the next two quarters. Despite this, the US Good Trade Balance for November decreased to $-83.3 billion from $98.8 billion in October, and the US S&P/Case-Shiller Home Price Indices for October decreased to 8.6% YoY from the predicted 9.7% and the 10.4% readings in September.
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