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Monday, May 31, 2021

Let's Analyze All the Major Pairs

Let's Analyze All the Major Pairs

Good morning traders! Today we are going to do an in-depth posting on various forex pairs. The idea of ​​this post is to give an overview of all the major pairs in a high temporality (Weekly or higher) to study their long-term behavior.

Major currency pairs are any pair that includes the US dollar (USD), which currently holds the position of the largest economy in the world. Major pairs are the most widely traded currencies in the foreign exchange market. Here are the 7 major forex pairs that are considered to be the most popular across the world:

AUD/USD
EUR/USD
GBP/USD
NZD/USD
USD/CAD
USD/CHF
USD/JPY


🔸Let's start by analyzing the EUR/USD , which is the one found on the main screen of the post:

We see that the price was within a bearish channel since 2008, which implies a downtrend for more than 12 years. In 2020 a bullish breakout was generated, and since then, the movement has been in that direction. We consider that the target of the current momentum is in the area of ​​approximately 1.2500. If the price reaches this level, we have two potential scenarios, which include a bullish breakout and a movement towards the 1.3900-1.4000 zone, or rejection and its respective downward movement towards the short-term demand zone at 1.1700.

🔸AUD/USD:

snapshot

The price has been in a downward trend since 2012, and although during 2020 and 2021, the movement was clearly upward, it has not yet managed to penetrate any previous maximum that may indicate a change in trend. In fact, our target for the bullish movement is the supply zone that also coincides with the descending trendline. From there, in case of a bullish breakout, the next target is the resistance zone at 0.9500, and if there is a downside rejection, the bearish target is the demand zone at 0.69000-0.70000.

🔸GBP/USD:

snapshot

Similar case to EUR/USD . The downward trend that was in force for more than 12 years was strongly broken to the upside, and the movement in that direction is still active. The difference is that the price at this precise moment is facing a resistance zone . In case we see a bullish breakout, the final target is in the supply zone at 1.7100-1.7200, being careful with the intermediate zones indicated on the chart. These zones are of lower interest than the higher-grade zone, but they can certainly involve some kind of price reaction.

🔸NZD/USD:

snapshot

The price broke the downtrend that had been in force since 2014 and made a significant upward movement. It is currently in a fairly large consolidation after the rejection at the 0.7400 area. Although the bullish movement slowed down, we consider that it is only a retracement and that it has the potential to rise to 0.7500-0.7600. If it faces that area, the bullish scenario in case of a breakout will imply a very interesting move towards 0.8800, and the bearish scenario in case of a rebound would imply a move towards the short-term demand zone at 0.69500.

🔸USD/CAD:

snapshot

Price bounced off the previous high, creating a double top pattern. The pin bar on the weekly chart was very clear, indicating bearish intentions, and since then, the decline has not slowed down. Now we are in strong support, with which we could expect some kind of reaction, but at the moment, we do not see anything significant. If there is a rebound, the potential upward movement could reach the 1.36500 area as the first target, which, if broken, leads to a movement to 1.4600. In case there is not enough demand and the price generates a downward movement, the first level to take into account is the ascending trendline, which, if it breaks, the price has a free path towards 1.0600.

🔸USD/CHF:

snapshot

Of all the analyzes, this is the most complex. It has been a long time since the price has a clear trend; even the breakouts are quite noisy. At the moment, our analysis is 100% bearish . This is because the price broke the ascending trendline, and since then, it has been generating lower lows and lower highs, although in a slightly lateral way. The target of the current move is 0.8300.

🔸USD/JPY:

snapshot

The price compressed for almost 4 years to form a kind of triangle that was broken to the upside a few weeks ago. We saw a small throwback to the broken trend line and its subsequent rejection. Due to this, our vision is bullish towards the next resistance zone at 112,000. If at that level we see a bullish breakout, the next zone is quite close at 114,000. If there is no breakout and instead we see a bearish rejection, the demand zone to take into account is 107,500-108,000.

We hope that this compilation of analysis will be useful to you, and in case you need another timeframe or some other pair, leave it in the comments, and we will gladly make a post! Have a great day!




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