Forex Majors technical analysis 2/4/2017



The pair has broken below the wedge 1.07100 level and briefly tested 1.0520 level. Below this level target is 1.0440 short-term. Look for short trades only with SL above 1.07300. Invalidation of the next leg lower only in the case of a daily close above 1.07500. The pair is testing falling trend line 1.0600 level. Rejection from here is needed for downside continuation.



The pair has broken above the triangle 1.2500 level and is going for a test of the strong falling trend lines confluence of resistance. Only the daily close above 1.2680 will invalidate sideways range between 1.2000-1.2700. Staying aside for now.



The pair has bounced from the strong support of medium-term upside Pitchfork channel 1.2980. The daily close above 200 SMA 1.3140 is needed for upside reversal and continuation. Only a daily close below 1.2980 would invalidate uptrend continuation. Look for long trades with SL below 1.3020. No change in view.



The pair briefly broke above 0.7680 level of the long-term downside Pitchfork channel. A daily close below 0.7600 is required for the reversal lower. Invalidation of the long-term downtrend only on a daily close above 0.7720. Short trades are still preferred as long as 0.7700 holds on a daily basis.


NZDUSD has broken below the strong upside support 0.7240 level which will now act as a downside support. Targets on the downside are 0.7110 and 0.7057. Look for short trades with SL above 0.7250 as it seems we have an H&S formation with the neckline at 0.7130. The pair is retesting 0.7240 level again.



The pair has briefly broken below 0.8480 and is retesting again falling trend line 0.8550 level. The daily close above this level is required for the upside continuation. Rejection from here would lead to a 0.8450 retest. Look for now only for short trades with SL above 0.8560. The pair briefly broke the 0.8450 level. The daily close below 0.8330 is needed for the downside extension.



The pair has formed a range between 112-115.300. It is bouncing from an 112 lower end of the range for a retest of 114.700. If long trades are not already in progress, buying the pair is preferred only on a daily break above 115.500. SL on existing long trades below 112. The pair now needs to hold 112.800-113.500 zone for the upside reversal to be complete. No change in view.


USD correction is on a way. We need to see the reaction from this levels for the continuation higher.

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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