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Market News Watching the foreign exchange market trend on December 10: technical analysis of the euro, the pound sterling and the Australian dollar
Watching the foreign exchange market trend on December 10: technical analysis of the euro, the pound sterling and the Australian dollar
After hitting a one-week high of 1.1355 on Wednesday, the euro fell below 1.13 against the US dollar; on Thursday (December 9) before entering the North American market, the pound was still on the defensive against the US dollar, although it had rebounded a few points from the daily volatility low; AUD/USD continued to rise to 0.7186, the highest level in more than a week, but fell slightly at the close, at around 0.7150.
2021-12-10
9965
Currency: EUR/USD
Resistance 2: 1.1385
Resistance 1: 1.1355
Spot price: 1.1295
Support 1:1.1280
Support 2: 1.1250
After hitting a one-week high of 1.1355 on Wednesday, the euro fell below 1.13 against the dollar. The U.S. interest rate spread on European bonds is once again in favor of the U.S. dollar. Before the release of the US CPI tomorrow, especially before the Fed's decision next week, the euro bulls are quite uneasy, and the risk of high profit-taking adjustments is more realistic. In the short term, due to the policy outlook and the surge in cases even before the full arrival of the Omicron virus strain, there may be further blockades, which will pose certain disadvantages to the euro. The short-term 4-hour chart has a clear pullback. If 1.1280 falls below, it will further slide to 1.1250. Before the Fed's meeting to discuss interest rates next week, it is unlikely that the euro will move upward against the dollar.
Currency: GBP/USD
Resistance 2: 1.3350
Resistance level 1: 1.3300
Spot price: 1.3211
Support 1: 1.3169
Support 2: 1.3100
Before entering the North American market on Thursday (December 9), the British pound was still on the defensive against the U.S. dollar, although it had rebounded a few points from the daily lows. The currency pair is still trading near the 1.3200 mark. The United Kingdom has imposed strict restrictions on COVID-19, forcing investors to reduce their bets on the upcoming interest rate hike by the Bank of England. This, coupled with the continuing uncertainty associated with Brexit, continues to be a headwind for the pound. On the other hand, the U.S. dollar attracted new buying orders and reversed part of the decline in overnight profits when the stock market generally weakened. In addition, the Fed’s hawkish expectations further supported the U.S. dollar and put some downward pressure on the GBP/USD. However, as investors tended to wait and see before the release of US consumer inflation data on Friday, the downward trend was still cushioned. The hourly chart and the 4-hour chart show short-term, the pound is struggling at a low level against the dollar, and the technical indicators are oversold. If the US consumer price index (CPI) is not good tonight, it may give the pound a chance to rebound from a low level. But the rebound will not have much surprise. Once the data is super good, the pound against the dollar may fall further, falling below the recent low of 1.3169, and aiming at 1.31-1.30 below.
Currency: AUD/USD
Resistance level 2: 0.7200
Resistance 1: 0.7170
Spot price: 0.7144
Support 1: 0.7120
Support 2: 0.7070
AUD/USD continued to rise to 0.7186, the highest level in more than a week, but fell slightly at the close, at around 0.7150. Market sentiment deteriorated, the AUD/USD fell, and the U.S. dollar made the most profit. However, market volatility is limited because most major currency pairs remain volatile. Investors are waiting for next week to announce the announcement of the mutant strain of the new crown virus Omi Keron and the Fed's monetary policy decision to become clear. The AUD/USD remained at the upper edge of Wednesday's shock range, and the daily chart showed that the exchange rate rose to a bearish 20 moving average after the selling was blocked. The kinetic energy indicator remained downward and was in the negative zone. At the same time, the relative strength indicator had lost kinetic energy, and the exchange rate fell and was in the negative zone. However, since the exchange rate has gone out of higher highs and higher lows, it is still unclear whether the exchange rate can continue to fall. The short-term 4-hour chart shows that the exchange rate has sorted out overbought conditions, but it is still in the positive zone. AUD/USD is still above the bullish 20 moving average, while technical indicators are flat in the positive zone. At the same time, the exchange rate returned to below the bearish 100 moving average. If the exchange rate falls below 0.7140, this recent round of rebound may come to an end. However, the general trend will not become clear until the outcome of the Fed's meeting on interest rates next week. Prior to this, the pressure should be careful to avoid the risk of betting on the Australian dollar long.
Only personal views, not representative of the organization’s views
Source: Bank of China's official website, Bank of China Guangdong Branch Wang Gang, original title: "Foreign Exchange Viewing Trend December 10, 2021"
Resistance 2: 1.1385
Resistance 1: 1.1355
Spot price: 1.1295
Support 1:1.1280
Support 2: 1.1250
After hitting a one-week high of 1.1355 on Wednesday, the euro fell below 1.13 against the dollar. The U.S. interest rate spread on European bonds is once again in favor of the U.S. dollar. Before the release of the US CPI tomorrow, especially before the Fed's decision next week, the euro bulls are quite uneasy, and the risk of high profit-taking adjustments is more realistic. In the short term, due to the policy outlook and the surge in cases even before the full arrival of the Omicron virus strain, there may be further blockades, which will pose certain disadvantages to the euro. The short-term 4-hour chart has a clear pullback. If 1.1280 falls below, it will further slide to 1.1250. Before the Fed's meeting to discuss interest rates next week, it is unlikely that the euro will move upward against the dollar.
Currency: GBP/USD
Resistance 2: 1.3350
Resistance level 1: 1.3300
Spot price: 1.3211
Support 1: 1.3169
Support 2: 1.3100
Before entering the North American market on Thursday (December 9), the British pound was still on the defensive against the U.S. dollar, although it had rebounded a few points from the daily lows. The currency pair is still trading near the 1.3200 mark. The United Kingdom has imposed strict restrictions on COVID-19, forcing investors to reduce their bets on the upcoming interest rate hike by the Bank of England. This, coupled with the continuing uncertainty associated with Brexit, continues to be a headwind for the pound. On the other hand, the U.S. dollar attracted new buying orders and reversed part of the decline in overnight profits when the stock market generally weakened. In addition, the Fed’s hawkish expectations further supported the U.S. dollar and put some downward pressure on the GBP/USD. However, as investors tended to wait and see before the release of US consumer inflation data on Friday, the downward trend was still cushioned. The hourly chart and the 4-hour chart show short-term, the pound is struggling at a low level against the dollar, and the technical indicators are oversold. If the US consumer price index (CPI) is not good tonight, it may give the pound a chance to rebound from a low level. But the rebound will not have much surprise. Once the data is super good, the pound against the dollar may fall further, falling below the recent low of 1.3169, and aiming at 1.31-1.30 below.
Currency: AUD/USD
Resistance level 2: 0.7200
Resistance 1: 0.7170
Spot price: 0.7144
Support 1: 0.7120
Support 2: 0.7070
AUD/USD continued to rise to 0.7186, the highest level in more than a week, but fell slightly at the close, at around 0.7150. Market sentiment deteriorated, the AUD/USD fell, and the U.S. dollar made the most profit. However, market volatility is limited because most major currency pairs remain volatile. Investors are waiting for next week to announce the announcement of the mutant strain of the new crown virus Omi Keron and the Fed's monetary policy decision to become clear. The AUD/USD remained at the upper edge of Wednesday's shock range, and the daily chart showed that the exchange rate rose to a bearish 20 moving average after the selling was blocked. The kinetic energy indicator remained downward and was in the negative zone. At the same time, the relative strength indicator had lost kinetic energy, and the exchange rate fell and was in the negative zone. However, since the exchange rate has gone out of higher highs and higher lows, it is still unclear whether the exchange rate can continue to fall. The short-term 4-hour chart shows that the exchange rate has sorted out overbought conditions, but it is still in the positive zone. AUD/USD is still above the bullish 20 moving average, while technical indicators are flat in the positive zone. At the same time, the exchange rate returned to below the bearish 100 moving average. If the exchange rate falls below 0.7140, this recent round of rebound may come to an end. However, the general trend will not become clear until the outcome of the Fed's meeting on interest rates next week. Prior to this, the pressure should be careful to avoid the risk of betting on the Australian dollar long.
Only personal views, not representative of the organization’s views
Source: Bank of China's official website, Bank of China Guangdong Branch Wang Gang, original title: "Foreign Exchange Viewing Trend December 10, 2021"
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