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

USD/CAD Price Analysis: Price retreats below 1.3700 from the monthly resistance line.

As the first hour of Thursday’s European trading day comes to a close, USD/CAD records yet another failure to breach the resistance line that has been in place for a month. It falls to 1.3655.

The RSI (14) drop from the overbought territory and the approaching bear cross on the MACD provide insight into the Loonie pair’s most recent falls.

Although the intraday bears are now in control as of press time, the pair’s immediate downside is constrained by an upward-sloping support line from Monday, close to 1.3650.

After that, the price could go southward into the 200-Simple Moving Average (SMA) level at 1.3480.

For the USD/CAD seller to continue dominating the market, a three-week-old rising trend line at 1.3420 looks critical, as a breach of this level wouldn’t hesitate to probe the previous monthly low of 1.3226.

NZD/USD Price Analysis: Fades bounce off 50-HMA, 0.6300 is critical to bear conviction

Before Thursday’s European session, NZD/USD is still moderately offered, around 0.6350.

While defending the one-week-old negative trend, as shown by the declining trend line, the Kiwi pair struggles to extend the day’s first recovery of the 50-Hour Moving Average (HMA). The negative MACD indications further bolster the tendency toward the downside.

To be sure, the NZD/USD pair can only fall in the near term if there is a clear negative breach of the 50-HMA, which was at 0.6335 at the time of publication.

However, the 200-HMA and an ascending trend line from November 28 close to 0.6300 look to be difficult obstacles for the Kiwi pair sellers to overcome.

After that, a decline into the swing low in late November at 0.6155 cannot be ruled out.

In the meanwhile, to entice the NZD/USD bulls, recovery advances must pass the weekly resistance line, at the latest around 0.6365 and the monthly high at 0.6475.

AUD/USD faces first weekly drop in three amid positive options market signs.

Before Thursday’s European session, the AUD/USD currency pair fought bears at 0.6715. In doing so, the Australian duo lets go of their excitement from the previous two weeks and prepare for the upcoming defeat.

The pair bears remain optimistic due to risk aversion and worries about weak economic data from Australia and China, although the options market is in the negative direction.

However, according to options data from Reuters, the one-month risk reversal (RR) for the AUD/USD pair, which measures the difference between call and put premiums, posts the largest daily gains in three days by flashing 0.120 figures at the latest. As a result, the weekly RR maintains its stability and records a winning streak for the third week (0.160 as of press time).

It’s important to remember that the market’s recent movements may also be related to the preparations for the Federal Open Market Committee (FOMC) meeting that will take place the following week.

EUR/USD nears 1.0500 before Lagarde’s speech.

In the Tokyo session, the EUR/USD struggles to hold above the psychological support level of 1.0500. The major currency pair is fighting to maintain control in a cautious market environment. Investors are forced to hide behind the US Dollar because of growing worries about the US economic crisis.

The shared currency bulls, meantime, are becoming nervous ahead of Christine Lagarde’s speech, which is slated for Thursday at the European Central Bank (ECB). The US Dollar Index (DXY) has extended its recovery to reach close to the impenetrable barrier at 105.40 at the time of writing. S&P500 futures are moving sideways as rising recession worries limit their upward potential.

Given that the Federal Reserve (Fed) plans to raise interest rates again the next week, the return on US Treasury bonds has recently rebounded significantly. The yield on US 10-year Treasuries has risen over 3.47% after falling close to 3.40%.

Please click here for the Market News Updates from 7 December, 2022.