EURUSD, GBPUSD, NZDUSD current minor recovery

Pair EURUSD is slowly moving from this year’s low to 1.11850 and is already at the current 1.13580. The euro is recovering from last week’s juice, forming more levels of current support.

Bullish scenario:

• EURUSD should stay above the 1.13200 previous high if it plans to continue on the bullish side.
• Now we need a break above 1.13800 to overcome last week’s resistance zone.
• Our next target is 1.14000, while higher resistance awaits us in the zone around 1.14500.

Bearish scenario:

• We need a new negative consolidation and a drop to 1.13000 before the first support.
• In that zone, we encounter MA20 and MA50 moving averages as additional support.
• Our MA200 is in the 1.12700 zone, and we expect greater support at 1.12500.
• The fall in the price below us descends into the zone of this year’s minimum, around 1.12000.

GBPUSD chart analysis

Pair GBPUSD has moved from the previous lower low to 1.32784 to the current 1.33432, and we are now looking for support in moving averages at 23.6% Fibonacci level at 1.33350. If this support lasts, we can expect further recovery and growth towards higher levels on the chart.

Bullish scenario:

• We need a positive consolidation that, together with the MA20 and MA50 moving averages, will direct the money towards the previous resistance zones.
• Our first resistance is at 1.33690 at 38.2% Fibonacci level along with MA200 moving averages.
• A break above us can take up to 50.0% Fibonacci levels to 1.34000.
• Our December target is the November lower high at 1.35000.

Bearish scenario:

• We need a new negative consolidation and a price withdrawal below the MA20 and MA50 moving averages.
• Further price increase brings us down to the support zone around 1.33000.
• On 1.32784 is our November minimum as potential support, and the break below opens up new minima this-year for this pair.

NZDUSD chart analysis

Pair NZDUSD fell to new lows this year at 0.67800. After that, we have a smaller jump and recovery to the current 0.68300. Bearish pressure is huge due to the newly discovered type of coronavirus in Africa, and the dollar as the primary currency will always have an advantage over the New Zealand dollar.

Bullish scenario:

• We need further pair recovery with a positive consolidation that would climb us above 0.68500. Then the next resistance is in the zone 0.69000-0.69500.
• And if we manage to get out of that zone as winners and make a break above, then we climb above the previous trend line and return to a stronger bullish trend.

Bearish scenario:

• We need a negative consolidation as well as a pair pull below 0.68000.
• The next support is on 67,500 zones of NZDUSD movement from November last year.

Market overview

Eurostat’s quick estimate showed that inflation in the eurozone accelerated more than expected to a record high level in November, driven by higher energy prices.

Annual inflation rose to 4.9 percent in November from 4.1 percent in October. The rate was above the expected level of 4.5 percent.

Also, core inflation, which excludes energy, food, alcohol, and tobacco, rose to a record 2.6 percent from 2 percent in October. The core inflation forecast is 2.3 percent.

“The omicron variant has further increased the level of uncertainty, but for now, we doubt it will have a small impact on inflation,” said Jack Allen-Reynolds, an economist at Capital Economics. However, it seems that the main inflation will remain above the target at least until the end of next year.

With price pressures boosting medium-term expectations, the European Central Bank appears poised to tighten monetary policy despite increased virus risks carefully, said Bert Colin, an ING economist.