OSB Daily Technical Analysis for September 8, 2014

EUR/USD Profit taking and a higher close in the EURUSD on Friday following Thursday’s sharp decline. Failure to trade intraday above 1.30 suggests this round figure is a strong resistance level for now. On the downside support is at the 1.28 handle. Overall the Euro looks like it will continue in line with its long term trend which is to the downside. Bearish

EUR/GBP attempted to recover some of the previous day’s losses only to run into resistance at the 20 DMA and give up gains, closing at pretty much the same level. This pair is currently trading in a tight range and without much direction for now. Neutral – looking for direction.

EUR/JPY finding strong support at the 136.00 handle on Friday after a second day of dipping beneath this level and closing above it. This is the third time the pair tests this level in the past month. This market is looking bearish with some indecisiveness about which direction to go next. A close below current support might add to the bears case and possibly lead to 135.00 where the next significant support level is.

EUR/CHF does not really offer any real trading opportunity and is likely to trade at or near the 1.20 level within a tight range for now. Not a market many traders would want to be involved in unless the Swiss National Bank is writing their pay check.

GBP/USD closed slightly higher from Thursday’s close trading below 1.63 for the first time since February. We might have found support at this level however a close below here is an opening to lower prices. This pair is looking very weak however the sharp declines last week might encourage some profit taking and short term bounces. Bearish.

USD/JPY Intraday rally for the USDJPY on Friday only to close slightly lower. The close just above the 105 handle suggests resistance in this area is significant. The USDJPY has had a good run over the past three weeks and might be preparing for some consolidation at these levels before heading on to new highs. Bullish.

USD/CAD Indecisiveness in the USDCAD on Friday closing pretty much unchanged from the previous day. This market is bullish but is having a hard time moving higher from here. The 1.09 handle is a resistance level we need to close above if we have any chance of moving higher. A close below 1.0850 suggests weakening of the up-trend is this pair.

USD/CHF Consolidation of the previous days action for the USDCHF on Friday only to close 15 pips below Thursday close. This market remains bullish with some pull backs likely.

AUD/USD Positive day for the AUDUSD on Friday with intraday trading occurring above the 0.94 handle. A close above this level might see this market heading towards 0.9450 at least for now. This market has traded in the 92.50-94.50 range for much of this year and does not appear to have the energy to push much higher.

NZD/USD Another retest of support at the 0.83 handle with a close just above for the fourth consecutive trading session. This suggests that the NZDUSD pair might have bottomed out in the short term and sellers are stepping away. This market is likely to trade in a range and consolidate at these levels prior to moving either lower or higher. A close below 0.83 opens up the route to lower 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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