The foreign exchange market is delivering powerful, trend-defining moves. This week’s outlook is dominated by significant breakouts and breakdowns, with pairs like EURGBP, EURNZD, and AUDNZD pushing into new highs. In contrast, NZDCHF has accelerated its downtrend, while AUDCAD has demonstrated a classic false breakout, trapping optimistic buyers and shifting momentum in favor of sellers.
AUDCAD
Major Bias: Bearish
The recent bullish breakout in AUDCAD has proven to be a bull trap. After rallying to a high near 0.92098, the price has sharply reversed, plunging back below the critical 0.90679 breakout level. This failed breakout is a significant bearish signal, indicating that sellers have forcefully regained control. With momentum indicators like the RSI turning down sharply, the path of least resistance is now back into the previous trading range, targeting the 0.88526 support zone.
EURGBP
Major Bias: Bullish
EURGBP has successfully converted its consolidation into a confirmed bullish breakout. The pair has cleared the 0.87267 resistance with conviction and continues to print higher highs, reflecting strong buying pressure. Both the RSI and MFI indicators are in firm bullish territory, supporting the case for continued upside. The former resistance at 0.87267 is now the key support level to watch. The trend is clearly up, and buyers remain in command.
NZDCHF
Major Bias: Bearish
The downtrend in NZDCHF has intensified, with sellers breaking through the 0.46588 support level and accelerating the decline. The pair is now in a state of freefall, establishing new lows with significant momentum. While indicators like the RSI are in deep oversold territory, this primarily reflects the strength of the bearish trend. In such a strong directional move, these conditions can persist. The bias remains unequivocally bearish until a clear and sustained price reversal occurs.
AUDNZD
Major Bias: Bullish
AUDNZD is in the midst of a powerful bull run, having decisively broken through the major multi-year resistance at 1.11729. This breakout signals a significant long-term shift, with the pair now trading at fresh highs. While the trend is undeniably bullish, indicators such as the RSI and MFI are deep in overbought territory, suggesting the rally is extended and may be due for a consolidation or pullback. The primary bias is bullish, but traders should be cautious of potential short-term exhaustion.
EURNZD
Major Bias: Bullish
The primary uptrend in EURNZD has resumed with force. After a period of consolidation, buyers have pushed the pair to new all-time highs, breaking above the psychological 2.00178 level. This breakout confirms that the pause was merely a resting phase before the next leg higher. With the RSI and MFI turning up sharply, momentum is firmly with the bulls. The former resistance level around 2.00178 is now the immediate support zone to watch.
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