OSB Daily Technical Analysis for August 21, 2014

EUR/USD – bears took over the day and pushed the EUR/USD beneath the 1.33 level without much difficulty. The break below this level indicates that this market is likely to continue lower. Next support is at the 1.31 handle. We are in bearish mode short to medium term.

GBP/USD – early strength during the day and effort to push above 200 DMA was faded by the bearish. Looking for a lower print on the GBP with 1.6550 the next support level. Bearish with some volatility ahead.

EUR/JPY – mixed day for the EUR/JPY. Sell off followed by buyers entering to take control of the day. Market poised to move higher with the 138 level in sight. A close above this level is bullish and will set the ground for a move higher.

NZD/USD – significant damage with a further break down of the NZD versus the USD. Strongly bearish here with more downside on the cards with the next support close to the 0.8260 levels. Looking for more downside from there.

USD/CAD – bullish sentiment with a decisive push towards the 1.10 handle. A close above this level will give confidence to additional bulls to enter the market. Might not be a straight forward affair as consolidation of recent gains possibly on the cards.

USD/JPY – strong session with Fed minutes on divided opinions giving some extra strength. Break above resistance at the 103 handle which now acts as support level. A further push above 104 might be on the cards as bullishness remains in this pair.

USD/CHF – three strong up days in this pair likely to be followed by some correction at these levels. Look for a pullback to the 0.9080 levels or possible lower as some gains are given back. Overall bullishness remains with a move towards 0.9190 possible.

AUD/USD – mixed day with a second close below the 200 DMA. Bearish mood prevails with 0.9250 remaining as support which appears to be holding strong. A break below might motivate bears to add to their already existing shorts.

EUR/CHF – consolidation and continued bearishness in the EUR/CHF. Looking for a lower print at the 1.2090-60 levels. Neutral sentiment for now.

EUR/GBP – bearish day with buyers selectively entering this market at key points throughout the day. Likely to remain within this range at least for now. A wait and see approach is order for this pair.

 

NOTE

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We are currently working to develop proprietary tools to add to our daily reports and will be rolling those out in due course. The analyst preparing our charts, a long time student of the market, offers his general guidelines about the markets and trading to bear in mind while reviewing the charts.

1. Day trading is for tremendously gifted traders, for the rest of us it’s a loser’s game.

2. Understanding and managing emotions: greed, fear, hope and despair is imperative.

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9. You will fail to stick to your plan. The sooner you do the quicker you can move on and correct your mistakes.

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