OSB Daily Technical Analysis for August 26, 2014

EUR/USD A gap lower for the EUR/USD following the announcement of ECB intentions to stimulate the economy. Support is at the 52 week low close at 1.3105. A close below this level is mostly likely to see more shorts stepping in, adding to the downward pressure. Bearish.

USD/JPY Close above the 104 handle with the next significant resistance at the 104.565 handle. Yesterday’s move is a bullish confirmation in this pair. Consolidation at these levels is to be expected.

GBP/USD Higher close for the Sterling against the Dollar on Monday. Bearish – this pair is likely to remain within a range for now.

EUR/GBP Close below the 20 DMA on Monday following the formation of a base above the 50 DMA last week. Bearish price action on Monday.

EUR/JPY Corrective price action for the Euro against the Yen. A close above resistance at 138.00 is bullish for this pair. Otherwise bearish, support at the 136.30 area.

EUR/CHF Big down day for the EURCHF pair as we get to levels not seen since January 2013. Strong support around the 1.2065 levels. Bearish.

AUD/USD Mixed day for the Aussie dollar as it remains within a range and hovers around the 200 DMA and consolidates at these levels. Neutral for now.

NZD/USD A close below the 0.8350 support area and strong downward pressure for the Kiwi on Monday. Next support at 0.83 which is looking likely for now. Bearish.

USD/CAD headed higher on Monday with a retest of the 1.10 resistance level. Consolidation and further retesting of resistance for now. Bullish

USD/CHF Bullish day with short to medium term bias remaining to the upside with some consolidation at these levels. A close below 0.91 would seriously question bullishness and this pairs strength to go any higher.

 

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.

3. Get a trading plan and stick to it – clear, simple rules are more effective than complex ones.

4. Most chart patterns, particularly those of shorter time frames will never fail to disappoint.

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

6. There will be losing trades and periods. Accept it.

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.

10. Successful trading and money management is not about intelligence. It is about Patience, persistence and discipline.

 

Risk Disclaimer

Forex and CFDs are leverage products, involved a high level of risk and can result in the loss of all your invested capital. Forex and CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, you should ensure that you understand the risks involved and take into account your level of experience.

All information on this website, including any opinion, charts, prices, news, data, Buy/Sell signals, research and analysis is our point of view and is provided as general market commentary and does not constitute any investment advice.

OneStopBrokers.com will not accept any responsibility or liability for losses incurred by customers, visitors or traders as a result of using the data available on OneStopBrokers.com. Read more

---