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10 forex charts of major pairs with big picture supports and resistance

The charts here were captured on 21 May to prepare for my seminar last night. I am looking at big levels so in my opinion the picture hasn’t changed much since 2 days.

 

Chart #1 – Overlay of USD vs major forex currencies from 18 April to 21 May 2018

If you want to know how an overlay like this works and how to make one, see this post ‘See relative strength, pick winning forex trade from an overlay‘.

I start this overlay from 18 April because I want to know how the major currencies here performed since USD bottom. Give or take a few days, I see USD bottom on 18 April. Over this period, USD performed strongest against GBP and NZD and weakest against SGD, CAD and CNH.

For a USD bull assuming the current trend holds, best pairs to look at are short GBPUSD and NZDUSD. For USD bears, look at short USDCAD, USDSGD or USDCNH.

Traders who want to skip USD, look at crosses such as short GBPCNH, NZDCNH, GBPCAD, NZDCAD.

Overlay of USD vs major forex currencies starting from 18 April to 21 May 2018

Overlay of USD vs major forex currencies starting from 18 April to 21 May 2018 | Source: Tradingview.com

 

Chart #2 – EURUSD weekly chart from early 2015 – May 2018

Current momentum of EURUSD is still down so short term traders should see any up move as retracement. September high last year is a feature that could offer potential resistance. Purple zone below offers the optimum support.

For long term EURUSD bulls, this purple zone could be a compelling point to look for long. However this doesn’t mean one should just place a limit order there because there is always room for overshoot. The purple zone offers potential TP for shorts, bulls must still wait for price action to print a reversal pattern before a long signal if any presents itself.

EURUSD weekly chart from early 2015 - 21 May 2018

EURUSD weekly chart from early 2015 – 21 May 2018 | Source: Tradingview.com

 

Charts #3, 4 – AUDUSD weekly chart from September 2014 to 21 May 2018

There are two major features in this AUDUSD chart.

AUDUSD weekly chart from September 2014 to 21 May 2018

AUDUSD weekly chart from September 2014 to 21 May 2018 | Source: Tradingview.com

Firstly, look at the red arrows. Based on these arrows which are equally long suggests why we may be seeing a potential bottom in this pair since 3 weeks.

Secondly look at the purple zone. This zone around 0.77 was a major resistance feature over a period of 18 months. Since AUDUSD current trend is down since 4 months and 0.77 is above, safe to say that any retracement back to this level could run into resistance.

This chart below starting from 2016 brings across 0.77 as a potential resistance in a much clearer manner.

AUDUSD weekly chart from beginning 2016 to 21 May 2018

AUDUSD weekly chart from beginning 2016 to 21 May 2018 | Source: Tradingview.com

 

Chart #5 – NZDUSD weekly chart from July 2015 to 21 May 2018

Potential support and resistance clusters for NZDUSD.

NZDUSD weekly chart from July 2015 to 21 May 2018

NZDUSD weekly chart from July 2015 to 21 May 2018 | Source: Tradingview.com

 

Chart #6 – USDCNH weekly chart from late 2014 to 21 May 2018

Despite interventions by PBOC, this line chart of USDCNH shows how orderly the pair is, complying to previous tops and bottoms. If this observation is valid and remains true, then USDCNH has likely bottomed, bringing it back between 6.32 and 6.46 as the playground for traders.

USDCNH weekly line chart from late 2014 to 21 May 2018

USDCNH weekly line chart from late 2014 to 21 May 2018 | Source: Tradingview.com

 

Charts #7, 8 – USDJPY weekly chart from mid-2012 to 21 May 2018

This chart tells us USDJPY might run into resistance for now.

USDJPY weekly chart from mid-2012 to 21 May 2018

USDJPY weekly chart from mid-2012 to 21 May 2018

Closer look reviews confluence of potential resistance from horizontal level and trend lines.

USDJPY weekly chart from August 2016 to 21 May 2018

USDJPY weekly chart from August 2016 to 21 May 2018

 

Chart #9 – GBPUSD just crossed back below this major 30-year level

In this chart from 2008 to 21 May 2018, note two important features. Firstly there is a zone based on a low going back to 2009. In fact a much longer chart going back to 1994 shows that this low is a 30-year level. In other words, GBPUSD is at its worst since over 30 years. Secondly note the Double Top feature which GBPUSD printed recently and not coincidentally where its neckline happened to be.

I guess that until this 30-year/neckline is recovered, GBPUSD has a strong cap overhead and might even head much lower.

GBPUSD weekly chart from 2008 to 21May 2018

GBPUSD weekly chart from 2008 to 21May 2018

 

Chart #10 – EURAUD, EURNZD, EURCAD overlay

EURNZD painted green, EURAUD painted purple and EURCAD painted orange.

These 3 currency pairs orbit each other although at some points they swing quite far apart. In my mind, these are highly positively correlated and running risk-on, risk-off. In my mind, this chart says that whatever news that affects AUD, NZD or CAD are just temporary diversion because they always regress back to each other. Additionally this chart also suggests that we are seeing a rotation at play – EUR appears to be waning against all 3 commodity currencies.

EURAUD-EURNZD-EURCAD overlay

EURAUD-EURNZD-EURCAD overlay

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Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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