The corrective theme that emerged last week has intensified across the foreign exchange market. The majority of pairs are now in a clear risk-off mode, with sellers dominating the price action. Bearish momentum has accelerated in AUDCAD and AUDNZD following rejections from key highs. The downtrend in NZDCHF has resumed with force, while the pullback in EURGBP continues. EURNZD stands as the exception, finding stability at a critical support level, creating a more neutral outlook.
AUDCAD
Major Bias: Bearish
AUDCAD has experienced a significant bearish reversal after failing to sustain its breakout attempt. Sellers aggressively rejected the price at the 0.92698 resistance level, forming a potential double top pattern. The subsequent sharp decline has pushed the pair back towards the 0.90679 support zone. With momentum turning decisively negative, the bias has flipped firmly to bearish, suggesting a retest of the lower support levels within the previous range is likely.
EURGBP
Major Bias: Bearish
The corrective move in EURGBP is ongoing, with sellers maintaining pressure from the recent highs. The price continues to drift lower, reflecting a clear loss of bullish momentum. Both the Momentum and Money Flow Index (MFI) indicators are pointing downwards, confirming the shift in control towards sellers. The bias remains bearish for the week ahead, with the price likely to continue its descent towards the next significant support zone.
NZDCHF
Major Bias: Bearish
The brief pause in NZDCHF’s downtrend has concluded with a decisive bearish continuation. Sellers have broken through the minor consolidation floor, re-igniting the long-term downtrend. The price is now pushing into fresh lows with renewed momentum. The technical structure is overwhelmingly negative, and with no signs of a bottom forming, the path of least resistance remains firmly to the downside.
AUDNZD
Major Bias: Bearish
The pullback in AUDNZD has deepened, with the pair now consolidating after a sharp drop from the highs. This sideways price action appears to be forming a bearish continuation pattern, suggesting that sellers are merely pausing to gather strength before the next move lower. With momentum indicators pointing down, the bias remains bearish. A break below the current consolidation range would likely trigger a further decline towards the initial breakout level of 1.11729.
EURNZD
Major Bias: Neutral
The sharp sell-off in EURNZD has been halted at the critical support level of 2.00178. Buyers have successfully defended this zone, leading to a period of consolidation and market indecision. While the intense selling pressure has subsided, bullish momentum has yet to make a strong return. The pair is currently in a state of balance, making the bias neutral. A sustained hold above 2.00178 could lead to a recovery, while a break below would signal a much deeper correction.
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