OSB Daily Technical Analysis for September 2nd, 2014

EUR/USD was largely unchanged on Monday despite bearish pressure. Weakness continues and lower prints are almost certain considering looming ECB actions in the near term.

USD/JPY Breakout for the USD/JPY pair suggests this market is going higher. The 105 handle is looking more realistic than ever. Any pullbacks will most probably be short lived and treated as buying opportunities.

GBP/USD Test of the 200 DMA during trading on Monday for the GBP/USD. This market is trying to go higher but sellers continue to overwhelm buyers. Tight range bound action for now until within the 1.65-1.66 level range until new direction is established.

EUR/GBP Another test of the 0.79 support level on Monday with a close just above. Support here is very strong and suggests a floor here and range bound for the short term. A close below this level might lead to a breakdown of prices.

EUR/JPY A push higher for the EUR/JPY and a break above the 137 handle. This market is likely to push towards the top of its short term range close to the 138 level if we manage to get a decisive close above 137. Watching for bullishness and ideally a close above the 200 DMA.

EUR/CHF Bounce back for the EUR/CHF following recent lows and a flirt with the SNB imposed floor. Neutral with range bound action for now.

AUD/USD More consolidation for the AUD/USD pair and range bound action on Monday. No imminent action or real direction in this market for now. Neutral

NZD/USD The 0.84 level remains elusive for the NZD/USD as it struggles to break above this point. This market remains bearish and in the range of 0.83-0.84 for now. Bearish but looking for more conviction.

USD/CAD Light trading of the USD/CAD on Monday as a result of the Labor Day holiday. Looking for a retest and ideally a close above the 1.09 level on Tuesday to convince buyers of additional bullishness.

USD/CHF The USD/CHF pair is going places. The 0.92 resistance level is within a breath away from yesterdays close and most likely to be tested. The last two trading sessions suggest ample strength to push to higher prices.

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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