Weekly Forex Market Outlook: AUDNZD, EURNZD, AUDCAD, NZDCHF, EURGBP (December 29th – Januay 02, 2026)

As markets fully reopen for the first trading week of 2026, volatility is beginning to pick up. Several pairs are testing critical structural boundaries, with the Australian Dollar showing particular strength across the board. The technical setups suggest a week defined by trend continuation for the Aussie crosses, while Euro pairs face significant support tests.

AUDNZD

Market Bias: Bullish

AUDNZD has maintained a robust bullish structure entering the new year. The market  is currently trading at 1.1604, pressing firmly against the Upper Bollinger Band (1.1630).

The technical outlook remains highly constructive. Price action is well above the 20-period SMA, which acts as dynamic support. The Stochastic oscillator is elevated at 87.34, indicating strong momentum rather than exhaustion in this trending context.

EURNZD

Market Bias: Bullish

EURNZD is currently undergoing a healthy correction within a broader uptrend. After hitting highs near 2.0630, price has retraced to 2.0301, testing the 20-period SMA support zone.

While the macro trend is up, the short-term momentum has cooled, as evidenced by the Stochastic dropping to 51.18. The pair is currently compressing between the middle band support and overhead resistance. If price can hold above 2.0230/2.0300, a bounce back toward 2.0600 is probable. However, a close below 2.0230 could deepen the correction toward the psychological 2.0000 handle.

AUDCAD

Market Bias: Bullish

AUDCAD is displaying signs of a potential breakout, trading at 0.9190 key zone. The pair is pushing against the Upper Bollinger Band and has cleared the recent consolidation highs.

The momentum is decidedly bullish, though the Stochastic is extremely overbought at 93.96. This suggests that while the trend is strong, a minor pullback or consolidation near 0.9200 may occur before further upside. As long as price remains above this level, the path of least resistance is up, targeting the 0.9270 resistance zone.

NZDCHF

Market Bias: Bearish

NZDCHF remains trapped in a clear downtrend, characterized by a sequence of lower highs. The pair is trading at 0.4571, struggling to gain traction below the 20-period SMA.

The technical structure favors sellers. Price recently rejected off the middle Bollinger Band area and is drifting back toward the lows. The Stochastic is in oversold territory but has yet to show a convincing crossover signal. The immediate downside target is the recent support at 0.4470. Any rallies toward 0.4600 are likely to meet selling pressure unless the 0.4650 level is reclaimed.

EURGBP

Market Bias: Bearish

EURGBP is under heavy selling pressure, sliding to 0.8707. The pair is currently hugging the Lower Bollinger Band, indicating a strong bearish extension.

The indicators reflect a heavily oversold condition, with the Stochastic reading at a very low 7.06. While this often precedes a technical bounce, the “band walking” behavior suggests strong bearish inertia. The 0.8700 level is a critical psychological support; a break below this could open the door for a slide toward the major demand zone at 0.85270. Bulls would need to see a recovery above 0.8740 market level to shift the bias to neutral.

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