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4 Global Market Updates- 22 September, 2022

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

USD/TRY Price Analysis: Hovers near all-time highs at 18.40, suggesting a minor correction.

The USD/TRY pair is trying to break above the consolidation that occurred in the early European session in a limited range of 18.30-18.40. After rising over the crucial level of 18.25, the asset has been held by bulls for the last week. On Wednesday, the major printed at a new record high of 18.41 despite aggressive Federal Reserve (Fed) policies.

The USD/TRY pair has re-entered the record highs on a daily basis after surpassing the high of 20 December 2021 at 18.39. The asset is now trading at all-time highs at 18.40, but the likelihood of a little pullback is increasing as the upward momentum shows symptoms of tiredness.

The 20- and 50-period Exponential Moving Averages (EMAs), which are scaling higher and are at 18.24 and 17.95, respectively, add to the bullish filters.

Additionally, the Relative Strength Index (RSI) (14) has been fluctuating for a while in the positive region of 60.00-80.00, which suggests that the upward trend will continue.

The asset will be dragged towards round-level support around 18.00 and then the August 9 low at 17.56 if there is a significant slide below the 20-EMA at 18.24.

AUD/USD Price Analysis: Set to rebound from a two-year low at 0.6550.

In the Asian session on Thursday, AUD/USD bears hammer the 0.6600 level while retesting the multi-month low. As a result, in the risk-off environment, the Aussie pair continues to trade within a falling megaphone trend broadening chart pattern.

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The AUD/USD prices are anticipated to retest the 29-month low given the bearish chart structure, risk aversion, and persistent trading below the 50-SMA of the quotation.

If so, the support line for the aforementioned pattern around 0.6550 may provide a test to the pair bears before guiding them down the May 2020 bottom under 0.6370.

If the AUD/USD pair continues to trend down beyond 0.6370, it is possible that it may decline toward the swing high at 0.6215 from late March 2020.

Alternatively, recovery advances will first target the 50-SMA resistance level around 0.6735 before emphasising the upper line of the stated bearish chart formation, which is at least near 0.6865.

However, the psychological magnet around 0.7000 and the monthly high at 0.6915 may prevent the Australian dollar from moving higher until the bulls regain control.

EUR/USD may fall further to 0.9770/20 – UOB

According to Lee Sue Ann and Quek Ser Leang, FX Strategists at UOB Group, the downward pressure on the EUR/USD currency pair might continue up to 0.9770 before 0.9720.

View for the next 24 hours: “We anticipated a decrease in the euro yesterday, but we believed that “any downturn is unlikely to overcome the firm support around 0.9900.” The predicted weakening was worse than we had anticipated, as the EUR quickly breached 0.9900 and fell to a low of 0.9812. The danger for today is still on the negative, perhaps to 0.9770, despite the erratic movement following the low. Resistance is found at 0.9865, then 0.9900.

Within the next three weeks: “While the EUR is under pressure, a persistent slide below the main support of 0.9900 looks improbable, according to our most recent narrative from last Wednesday (14 September, spot at 0.9980). After a week, the EUR broke through 0.9900 with force and fell to a low of 0.9812 during NY hours. The sudden drop suggests that the EUR is probably going to keep falling over the next several days. Watch the levels at 0.9770 and 0.9720. On the plus side, a break through 0.9940 (a “strong resistance” level yesterday was at 1.0050) would suggest that the present EUR downturn has steadied.

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USD/CAD oscillates at 1.3500, a two-year high, while options market bulls retreat.

Following a 26-month top update to 1.3530, the USD/CAD is gaining ground and is now approaching 1.3510 on Thursday morning in Europe. The Loonie pair follows the options market signals in the risk-averse markets by doing this.

According to Reuters’ data on the options market, the USD/CAD one-month risk reversal (RR), which measures the difference between call and put prices, was steady on Wednesday after increasing by the maximum in a week the day before. It should be observed that the weekly RR is still positive but now stands at 0.084 instead of 0.158 from the previous week.

The holder of a call option has the option, but not the duty, to purchase the underlying asset on or before a certain date at a predefined price. The right to sell is represented by a put option.

It’s important to note that although recent inactivity seems to be influenced by stronger oil prices, Canada’s top export, prior optimism among USD/CAD traders may have been influenced by the Fed’s aggressive stance.

Please click here for the Market News Updates from 21 September, 2022.

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