OSB Daily Technical Analysis for August 29, 2014

EUR/USD closed largely unchanged yesterday from the previous days close after testing the 1.32 level in the early session. This suggests some consolidation following the sharp declines since mid-August and seven negative trading sessions in the past nine. Failure to move higher in the next couple of sessions might lead to a retest of support at the 1.3150 level in the medium term.

USD/JPY More weakness from the USDJPY pair yesterday with sellers outnumbering buyers for the second day. Minor support at 103.50 was tested yesterday. A close below this is most likely to push prices close to the significant next support level at 103.

GBP/USD A slight move higher for the GBP against the USD on Thursday after finding strong support at the 1.6535 level. Resistance at the 1.66 level is the next test in the push for higher prints. A close above this level might indicate a move towards the 200 DMA at 1.6640 handle.

EUR/GBP Bearish day for the EURGBP yesterday finding support at the 0.7940 level. This market remains bearish despite its efforts to push higher. A push above the 20 DMA might prove short lived and offer bears an opportunity to add to their positions. Overall bearish for now.

EUR/JPY continued its downward trend with a close below the 137.00 level which is now resistance. This level is significant and suggests that this market is poised to move lower. A retest of this level on the upside is likely but this market remains weak for now. Next significant support at the 135.55 handle.

EUR/CHF A mixed day for the EURCHF on Thursday with a close at similar levels as the previous day. Current action indicates that we have more or less reached a floor in this pair with downside limited at this point. We remain neutral this pair any rebounds form here are likely to be short lived.

AUD/USD Higher prints for the AUDUSD pair with a test of the 0.9330 level which has now become support for this pair. Next significant test to watch out for is at 0.94 handle. This market is bullish with a correction becoming likely following recent gains.

NZD/USD A test of resistance at 0.84 without much strength for hold above ending the day slightly lower. This pair might be heading higher if we get a close above the 0.84 handle. Failure to close above this level and a close below 0.8350 might open the way for lower prints in line with the general trend for this pair.

USD/CAD Lower close for the USDCAD pair with the formation of hammer suggesting the market is looking for support at the 1.0825-35 levels following Wednesday sharp decline. This market has an upside bias for now. Look for a close above 1.09 for a continuation of the bullish scenario.

USD/CHF A close at similar levels as the previous day for the USDCHF which found support at the 0.9125 level. Bullishness remains and further upside is likely. A close above resistance at 0.9180 might indicate higher prices to come.

 

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.

 

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