OSB Daily Technical Analysis for August 25, 2014

EUR/USD The sell-off in the EUR/USD pair continued on Friday finding support close to 1.3220. Weakness continues and upward moves are most likely to trigger selling pressure. Expect the 1.3330 level to act as resistance going forward. Bearish – more downside on the cards for this market most likely.

USD/JPY A mixed bag for the USD/JPY on with a test of the 104 level and a positive day overall. Expect some consolidation around these levels after five continuous up days and a retesting of resistance at 104. We are bullish for now and expect this market to move higher. A close below 103 would elicit a revisit of this view.

GBP/USD Bearish sentiment following five negative trading days for the GBP/USD. The 1.65 handle is a strong support area which we don’t expect to break easily without pushback. Bearish with a wait and see approach.

EUR/GBP Down day for the EUR/GBP as it consolidates around the 0.80 level and just above the 50 DMA. We remain bullish. A close above the 0.8030 handle would definitely add to our bullishness.

EUR/JPY pair ended the week just below the 200 DMA finding strong support at the 137.60 handle. A close above 138 and a break out from this resistance level might encourage more buyers to step in. Bullish this market for now.

EUR/CHF A lower close on Friday with support being found at the 1.2090 levels. This market remains bearish for now and weakness persists. Any upside might prove short lived.

AUD/USD has hovered around the 200 DMA for the past three weeks with a close above on Friday. This range bound action leaves us with a neutral view of this market for now. A close below 0.9250 or above 0.9350 might change that view but for now its watch and wait.

NZD/USD More selling pressure on Friday as buyers stepped in for a mixed day in the Kiwi. Weakness is remains as bears remain in control and we have now conviction otherwise. A close below the 0.8350 level might see additional sellers stepping.

USD/CAD Another day of consolidation for the USD/CAD on Friday with a retest of resistance close to the 1.10 handle. A close above this level would certainly add to our bullishness in this pair as we continue to remain cautious at these levels.

USD/CHF Positive day for the Swiss Franc on Friday. We are bullish this pair and expect to see higher prints. A close below 0.9090 handle is a cause for concern and a revisit to our view. Watch out for resistance at the 0.9190 levels.

 

NOTE

The daily technical report is our new offering that will be available on our site mid-morning from Monday to Friday. Our objective is to offer a high level overview of the general market direction of the G10 currency pairs and some of the major indices and most liquid and highly trader commodities.

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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5. Your goal as a trader is to execute your plan and manage risk.

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7. Be ruthless with losing trades. Successful traders are patient winners not patient losers.

8. Making money over long periods of time is more important than being right or catching a ten bagger.

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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