OSB Daily Technical Analysis for September 4, 2014

EUR/USD found support close to the 1.3120 area following the hammer candle of the previous day which suggested a short term bottom and reversal from recent lows. This up-swing is likely to be short lived and would need to close above 1.32 prior to gathering further momentum. ECB interest rate announcement and possible further guidance on QE on Thursday.

USD/JPY A close below the 105 handle for the USDJPY and consolidation following three strong upward days for the USDJPY. This pull back is normal, expected and possibly short lived. This market is bullish.

GBP/USD More downside for the British pound following failure to trade above the 1.65 handle intraday despite trying to push through at a high of 1.6497. Next support level at 1.64. Potential for short term bounce following Wednesdays close. GBPUSD is bearish and looks like it might be heading lower from here. Bank of England interest rate announcement today.

EUR/GBP Another positive day for the EURGBP pair with a close above the 50 DMA and a test of the 0.80 handle. The next resistance at 0.8015 is likely to test the determination of buyers to push this market higher. Netural bias remains and range bound action in the next couple of sessions is more likely.

EUR/JPY A close below the 138 handle for the EURJPY on Wednesday following strong buying from the previous session. Some consolidation in this area is in order. We are watching this pair as it hovers around this area just above the 200 DMA.

EUR/CHF The shooting star candle in the EURCHF suggests the bounce back in the pair might be over and we are heading for another down leg and a retest of recent lows. With that in mind and the peculiarities of this pair additional confirmation is required.

AUD/USD Volatile day for the AUDUSD pair only to close higher than the previous day to form a bullish engulfing candle. More consolidation and range bound action. Neutral.

NZD/USD found support at the 0.83 handle. A close below this level is likely to open up the pair for lower prints. Bearish.

USD/CAD The Canadian dollar did not manage to stay above the 1.09 handle on Wednesday but found support at the 1.0870 level but managed to find support at the 1.0870 level. Bias remains bullish with a clear break and close above the 1.09 handle adding to traders convictions.

USD/CHF Failure to break out above 0.92 resistance level drove prices lower in the USDCHF pair on Wednesday. Consolidation and a test of support at 0.9150 is likely. Bullish.

 

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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