Forex Majors technical analysis 12/02/2016



The pair reversed the short term uptrend and is now on a way to test lower end of multi month range 1.06371. Multi month range low is broken and the pair is now open for extended downside. We will look for short entries on intraday price action. SL on initiated shorts here should be above 1.0750. No change in view, perfect downside support zone is 1.06500-1.07000 and is being tested now shorts are recommended only on a clear break of 1.0540.



Is out of rectangle bottom by breaking above 1.2340 level and is open for a retest of strong upside resistance 1.2800-1.2900 zone. Price action near or at that zone is to be watched for direction. Downside extension is open with a break of 1.2300 lower.



Has reversed medium term downtrend with a break of 1.3460 level. More upside is open now with strong support in 1.3400-1.3500 zone. SL on longs should be below 1.3400. Targets on the upside are 1.3800 and 1.4000.  The pair needs to break 1.3530 level for upside continuation and to overcome recent weakness which led to a retest of 1.3300.



With a hard break of 1.7480 we are short in this trade for a hard target of 0.7200 at least. Support for downside now is 1.7450-1.7500 zone. The pair is rejected by a strong downside support zone and for targeted downside 0.7200 level we need to see a break below 0.7300.


NZDUSD is in a process of breaking 200 SMA (blue line) 0.7020. We are short on this break. SL on shorts should be above 0.7100 also a Pitchfork channel break. Among the other commodity USD currency pairs this one has the greatest potential for weakness ahead.  The pair is retesting broken neckline of H&S formation 0.7100 level. No change in view and nay bounce should be used for entering new sell orders.



Downside break of a bullish flag has reversed the trend for EURGBP. The pair could test 0.8200 level lower while broken 100 SMA (red line) 0.8626 level holds. Important trend line 0.8500 level is being tested. Below 0.8480 downside 0.8200 test is expected. SL on shorts should be above 0.8620. No change in view.



With a break of 200 SMA daily (blue line) 106.560 level upside is open. This level is now support for the upside. Important level 61.8% Fibo resistance of Dec- June 2016 is next to be tested 114.140 level. With a break of this level next target is 117.735. SL on longs should be below 111.000. No change in view.



USD correction is over and now the upside is open. We have an upside trend continuation in USD.

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.

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