The forex market enters mid-December with a notable shift in momentum. The Euro is encountering renewed selling pressure, giving up recent gains against both the Pound and the Kiwi. At the same time, the New Zealand Dollar (NZD) is strengthening against the Franc and the Euro, although it shows a mild softening against the Australian Dollar as the Aussie finds renewed support. With volatility beginning to settle, the market is shaping into a more technical environment for the week ahead, supported by evolving forex signals that hint at broader shifts in sentiment.
NZDCHF
Market Bias: Bullish NZDCHF has delivered a strong reversal, breaking decisively out of its prolonged downtrend. The pair established a firm base around 0.44720 before rallying to the 0.46467 region. The Stochastic oscillator remains in overbought territory, which in this context reflects sustained bullish strength rather than an imminent reversal. With the ATR trending lower, volatility is normalizing and supports a steady, controlled advance. A clear break above 0.46500 would likely open the path toward the 0.47000 resistance zone.
AUDNZD
Market Bias: Bullish
After a sharp decline from the 1.16300 highs, AUDNZD has located structural support near the 1.14216 level. The pair is showing renewed upward movement, trading around 1.14939. Technical signals suggest selling momentum has eased for now. The Stochastic oscillator has formed a bullish crossover in the oversold region and is trending upward, indicating a fresh wave of buying interest. A continued climb toward the 1.15500 level appears likely if momentum holds.
EURNZD
Market Bias: Bearish
EURNZD remains in a pronounced bearish correction. The pair has fallen sharply from the 2.06380 peak, breaking several support levels to trade near 2.01590. Downside momentum is strong, with the Stochastic oscillator entrenched in oversold territory and offering no sign of bullish divergence. Sellers remain firmly in control, and unless a sudden reversal unfolds, a test of the psychological 2.0000 support zone is increasingly probable.
AUDCAD
Market Bias: Bearish
AUDCAD continues to trade within a frustrating consolidation, but short-term bias has shifted downward. The pair recently failed to break the range resistance near 0.92500 and has retreated to around 0.91826. The Stochastic oscillator has crossed downward from the overbought zone, indicating a shift in momentum toward sellers. With the ATR relatively flat, a major breakout is unlikely, but a gradual decline toward the range midpoint or the 0.90679 support remains the more favored scenario.
EURGBP
Market Bias: Bearish
EURGBP is undergoing a measured pullback following a strong bullish stretch. Price has stalled at the 0.88290 resistance and slipped to about 0.87312. The pair is now retesting a key breakout level that has turned into support. However, the Stochastic oscillator is trending sharply lower and approaching oversold conditions, highlighting ongoing weakness. If buyers fail to defend the 0.87200 area, the forex signals show correction may extend toward the 0.86500 level.
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