Forex Majors technical analysis 11/09/2016

Forex Majors technical analysis EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD, EURGBP, USDJPY

EURUSD

Bounce from 1.0830-1.0850 zone is underway and we are looking at 1.1000 level as major upside resistance. No change in view longs are valid from 1.0900-1.0930 with a SL below 1.0850. We had a break above important 1.12000 level of a falling wedge and now we need a confirmation and follow through for an upside extension to 1.15000.

 

GBPUSD

While 1.2000 support is holding we do not expect continuation lower. We had a nice break of rectangle bottom and we now expect for the pair to reach 1.2700 at least. Retrace of the last swing high is underway and we need to see a 1.2330-1.2400 support zone hold. Support is holding above 1.2500 the pair to target 1.2750.

 

USDCAD

Facing multiple rejections from important 1.3400 level and is still sitting at upper wedge line. For a larger move higher it needs to close above 1.3460. Reversal lower here would lead to a test of 1.3200. No change in view.

 

AUDUSD

 Levels to watch for a break of this wedge are 0.7700 and 0.7530. Longs are favored here on the bounce from well known support and seasonality in the pair. Break of 0.7700 is in making. No change in view we are long.

 

 

NZDUSD

Invalidation of the recent turn in a long term trend will be only in a case of a 0.6900 level lower.  The pair is bouncing from 0.6950-0.7000 zone. For this bounce important resistance level would be 0.7180. Strong resistance zone already indicated 0.7180-0.7250 is broken and extension higher is open. Stop losses on initiated longs should be below 0.7150. Bullish inside bar is in making and our view is bullish in the pair. We have RBNZ interest rate decision this week so with US elections we expect greater volatility, and the pair needs to hold 0.7200 level support. Target higher if this zone holds is 0.7500.

 

EURGBP

Turning higher from 0.8900 but it is still within flash crash candle 0.8830-0.9270. If longs are initiated here SL should be below 0.8880. No change in view. we need a break above 0.9000 for continuation higher.

 

USDJPY

Reached strong upside resistance 105.500-107 zone. We think that upside is capped and failure here would bring the pair back to 103.500. The pair is retracing the down swing from last week. SL on shorts initiated here should be above 105.700. We need a break below 102.750 for a stronger extension downside. So far the pair is bouncing from lower range level 101 and we don’t have a follow through yet on a break below 102.750.

 

We expect to see another leg of USD weakness in the following days regarding to our view that FED will stay aside from interest rate hike before  elections. So we think that both November and December possibilities of an interest rate hike will be off table until we have a new Economic policy from Government officials in US.

The four forex pairs which are considered to be the most heavily traded in the forex market. The four major pairs are: EURUSD, GBPUSD, AUDUSD, USDJPY.
These currency pairs are considered by many to drive the global forex market and are the most heavily traded. Although it is widely regarded that the major pairs consist of only four pairs, some believe that the NZSDUSD, USDCAD and EURGBP pairs should also be regarded as majors so we are adding them also.