OSB Daily Technical Analysis for September 3, 2014

EURUSD had a mixed day on Tuesday only to close at a similar level to the previous day, finding short term support around the 1.3130 area. The pair might be heading higher towards 1.32 where there is strong resistance. Any upswing is most likely a short term bounce as this market remains bearish and remains a sellers market in our view.

USD/JPY A breakout day for the USDJPY yesterday as buyers stepped in with might. Strength in this pair was evident yesterday and the close above 105 gives us confidence that this market is reaching for higher plains. Any pullbacks are not likely to overwhelm the general course of the bull run in the USDJPY.

GBP/USD Sell off in the GBPUSD with a close below the 1.65 support level. This is bearish for the Pound. A close below the next support level 1.6425-35 area is a strong indicator that this market might be heading to 1.62. With that in mind this downward path is not expected to be a straightforward affair. More action required to confirm our view.

EUR/GBP Big bullish candle in the EURGBP pair as the Pound Sterling weakened against the USD and the effect reverberated in the EURGBP. A close above resistance at the 0.7980-0.80 level might lead to higher prices however we feel the Euro is on borrowed time and riding the GBPUSD coat tails. Neutral

EUR/JPY Breakout above the 200DMA and a close above the 138 handle for the EURJPY on Tuesday. This is bullish for the pair. Confirmation needed to convince buyers of a continuation of this up leg. Resistance at the 138.40 level might lead to a pullback and some consolidation. Bullish – increasingly looking like a buyers market.

EUR/CHF The EURCHF looks like it has put in a floor at the 1.2060 handle and is most probably going to continue grinding away within a tight range for now.

AUD/USD Negative day for the AUDUSD breaking through the 0.9330 support area and closing lower. Next support area is at the 0.9240-50 level. This market remains in a sideways mood and is likely to remain within this range for now. A close below 0.92 would convince us otherwise.

NZD/USD Sellers stepped in aggressively on Tuesday in the NZDUD pair but were unable to keep the pair below the 0.83 handle for long. That being the case this market is bearish and it is a matter of time before the 0.83 level is retested and violated. Weakness is evident and lower prices are more likely than not.

USD/CAD Nice bullish candle for the USDCAD on Tuesday as it managed to close above 1.09. Strength in the pair has us believing that the 1.10 handle will be tested shortly. With that in mind we note the Canadian interest rate announcement today which is likely to play a role in the direction of this market.

USD/CHF The 0.92 handle proved too strong a resistance point for the USDCHF to close above yesterday despite bullish action throughout the day. USDCHF remains bullish and a decisive close above resistance would indicate 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.

 

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

---