OSB Daily Technical Analysis for August 28, 2014

EUR/USD A positive day for the EURUSD pair following three losing days. This bounce back and correction of recent losses is normal and expected. The overall trend remains bearish.

USD/JPY More consolidation for the USDJPY yesterday with a close just below the 104.00 level. Look for support at around the 103 levels which also happens to be where the 20 DMA is at. This market may spend some time in a tight range prior to finding new direction. Bullish with caution.

GBP/USD Higher prints intraday for the GBPUSD only to run into strong resistance at the 1.66 level and close at similar levels as the previous day. A close above the 1.66 level might lead to a further move higher just as a close below 1.65 will indicate lower prints. The bearish scenario is more likely considering recent weakness.

EUR/GBP A mixed day for the EURGBP with buyers and sellers battling it out only to close at similar levels to where it started the day. This type of action and the formation of text book hammer suggest that we might be heading back up to retest resistance at around the 0.7970-80.

EUR/JPY The EURJPY remained in a tight range during Wednesday without much direction and closing just above the 137 level for the second day in a row. Support here is significant, watch for a close below this level for any added conviction for further downside. Neutral and range bound for now.

EUR/CHF Down day for the EURCHF as it oscillates at the very strong SNB imposed support level of 1.20. This market is poised to remain at these levels for now without much momentum for either direction.

AUD/USD Positive action for the AUDUSD with a close above the 0.9330 resistance level. This suggests that we might have some further upside in the pair at least for the short term. In the medium term a cross of the 20DMA above the 50 DMA would be more convincing.

NZD/USD A move higher on Wednesday for the NZDUSD heading towards resistance at 0.84. Look for close above this level for any conviction of a higher move. Bearishness in this market remains and any upside might be short lived.

USD/CAD A sharp move lower for the USDCAD on Wednesday after failure to break the 1.10 level. Support at 1.09 has proved to be weak hence this market is looking for support at lower levels at around the 1.08 handle.

USD/CHF Bearish action for the USDCHF on Wednesday with potentially further correction to come. Support is at around the 0.91 levels. Bullish but cautious.

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.

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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.

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

 

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