In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes reports...
Technical outlook and ideas for Forex pairs
2022-02-07 • Updated
Technical outlook and ideas for Forex pairs
What is happening?
Some traders like fundamental analysis, which includes news, macroeconomic events, and financial statements. Others prefer to “trade the chart”. They assume that the price chart includes everything they need to know. If you regard yourself as a technical trader, this article is for you! We have outlooked several promising Forex pairs so that you don’t have to.
Euro has broken through an ascending channel and now trying to fall further. Dollar is strengthening, so we would expect a plunge to the 1.18 level. The rise of the euro is less likely and only will postpone the inevitable fall.
EUR/USD H1 chart
Support: 1.1818; 1.1800
Resistance: 1.8550; 1.1900
We get even more certain about the greenback movement when we look at the British pound chart. A nice accurate descending triangle is forming, divergence on RSI has already worked and we don’t see any signs of reversal movement. Fibonacci extensions help us set targets for this movement. By the way, we have a video about a Fibonacci tool, check it out!
GBP/USD daily chart
Support: 1.3400; 1.3300; 1.3150
Resistance: 1.3857; 1.4000
This pair is even more bearish than GBP/USD, so I would consider selling the pound in every pair. A descending triangle is forming for almost 5 months and RSI is ready to be broken downwards as well. Targets are on the chart and below this text.
GBP/JPY daily chart
Support: 149.0; 146.5; 144.0
Resistance: 152.3; 153.0; 155.0
Euro has managed to overcome 50 and 100 moving averages on the daily chart and now the only serious resistance on its way to the moon is 200MA. Passing this area is just a matter of time.
EUR/CAD daily chart
Support: 1.4850; 1.4615
Resistance: 1.5030; 1.5230; 1.5300; 1.5400
The technical strengthening of the New Zealand dollar is quite obvious if we look at NZD/CAD pair. On the daily chart, the breakout of the 200 moving average has been completed and after a small pullback (which might occur according to the RSI) the price will skyrocket to the highlighted levels.
NZD/CAD daily chart
Support: 0.8900; 0.8840; 0.8790
Resistance: 0.9030; 0.9100; 0.9220
In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes...
Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.
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