The forex market heads into December with a distinct shift in momentum. The strong trending phases seen earlier in the month are giving way to deep corrections and consolidations. The Euro and Australian Dollar are facing significant profit-taking against the Kiwi, while volatility measured by the ADX remains high in trending pairs but has collapsed in cross-pairs like AUDCAD.
EURGBP
Major Bias: Bearish
EURGBP is undergoing a technical correction after failing to sustain highs above 0.88000. The pair has slipped below the 0.87730 level as selling pressure intensifies. The Relative Volatility Index (RVI) has executed a bearish crossover and is trending downwards, signaling a shift in short-term momentum. While the ADX remains above 25, suggesting the broader trend is still active, the immediate price action favors sellers targeting a retest of the 0.87200 support structure.
NZDCHF
Major Bias: Bearish
NZDCHF remains entrenched in a powerful downtrend, with the ADX reading at a5 high 36.20, indicating a very strong trend. Although the pair has paused near the 0.46090 level, price action remains weak. The RVI shows a minor bullish crossover in oversold territory, which hints at a potential consolidation or weak relief bounce, but without a break of market structure, the dominant path of least resistance remains to the downside, targeting fresh lows below 0.44700.
AUDCAD
Major Bias: Neutral
AUDCAD is heavily range-bound, reflecting a lack of liquidity and directional conviction. The pair is oscillating tightly between 0.91000 and 0.91700. The key takeaway from the chart is the Average Directional Index (ADX), which has plummeted to 11.48. A reading this low confirms a “dead” market with no trend. Traders should expect choppy, sideways price action to continue until a catalyst forces a breakout above 0.91760 or below 0.89000.
AUDNZD
Major Bias: Bearish
AUDNZD is in the midst of a sharp bearish reversal. After a prolonged rally, the pair has rejected aggressively from the 1.16000 region and is currently trading near 1.14166. The RVI indicator has plummeted, confirming a surge in downside volatility. While the long-term trend points up, the short-term momentum is decisively bearish. Sellers are currently in control and will likely look to drive prices toward the 1.12899 structural support level before buyers step back in.
EURNZD
Major Bias: Bearish
Similar to AUDNZD, EURNZD is experiencing a deep pullback from its all-time highs. The pair has dropped to the 2.02215 level, breaking through minor support zones. The RVI lines have crossed downward and are descending, validating the strength of this correction. While the ADX at 35.18 shows the macro trend of EURNZD was strong, the current price action suggests further downside is probable in the coming week, with bears eyeing the psychological 2.0000 handle as a potential landing zone.
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