OSB Daily Technical Analysis for September 5, 2014

EUR/USD Collapse of the EURUSD losing two big figures after the ECB announcement caught markets off guard on Thursday by announcing a rate cut. Serious damage to the chart with next significant support at the 1.28 handle. Medium to long term the Euro is looking weak and lower prints are very much in order. In the short term, sharp moves likes this tend to retrace as profit taking kicks in. An upswing above the 1.30 handle is a possibility. Bearish, but oversold at least for now.

USD/JPY Close back above the 105 handle as we get close to levels last seen in January 2014. Strong resistance ahead at the 105.44 level which is also the 52 week high. A close above this level renews bullish sentiment and opens the way for higher prices. Bullish with increasing volatility as we head higher.

GBP/USD Significant break down for the GBPUSD yesterday slicing through support without much pushback. The 1.63 handle is also likely to be tested and broken through as weakness in this pair is very much prevalent. Bearish this is a sell only market at least for now with lower prints in the 1.60 region a strong possibility.

EUR/GBP Big down day for the EURGBP as well on Thursday with support just above the 0.79 handle holding it together. This pair looks likely to remain in a consolidative mode. A close below the 0.7870 might change that but until we close below this level EURGBP is neutral. Resistance above at 0.80.

EUR/JPY ECB actions reverberating in the EURJPY pair to drive prices lower only to find support above the 136 handle. A bounce back from yesterday’s sell off is likely in the next several sessions. EURJPY looks like it might grind away between 136.00-138.00. Neutral.

EUR/CHF Range bound and lower prices within the SNB allowable range for the EURCHF pair without much direction or impetus for now. Neutral and hands off in this market.

 
AUD/USD The AUDUSD attempted to push higher only to revert back and form a shooting star. Significant resistance just beneath the 0.94 handle is holding this pair within its recent range at least for now. A close above this level is needed to add any type of bullishness to our view. Neutral bias remains.

NZD/USD closed lower than the previous day after it tried to go higher intraday. Support at the 0.83 handle held for the day as we managed to close just above this level. We are likely to get a retest and possibly a push beneath this level on Friday as weakness in the NZDUSD pair gathers momentum.

USD/CAD retreated during the day on Thursday only to close above the 50 DMA and the support level of 1.870. This market appears to be consolidating for now. Canadian employment figures are to be announced on Friday. This might be the impetus for the pair to get further direction and move back higher.

USD/CHF Big up day for the USDCHF on Thursday with the pair soaring to its yearly high and pushing past resistance levels without much pushback. This pair is likely to go higher from here with a push towards the 0.94 handle looking very realistic for now. Some consolidation and profit taking after a big day like yesterday is to be expected.

NOTE

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