OSB Daily Technical Analysis for September 11, 2014

EUR/USD Mixed day for the EURUSD as it hovers around the 1.29 handle remaining within its recent range of support at 1.2850 and resistance at 1.2965. Consolidation and some range bound action as this market looks for new direction and prepares for another possible down leg.

EUR/GBP Buyers stepped in and took control of the EURGBP on Wednesday initially but were eventually overwhelmed by sellers who pushed the pair beneath the 50DMA and filled the gap from Mondays open. More consolidation and volatile action in line with recent days. Support at 0.7970-60 area.

EUR/JPY broke out and managed to close above the 200DMA for the third time in the past three weeks. The close just above the 138.00 handle is significant and what remains to be seen if it can keep above this level and push higher. A further close above the 138.45-55 resistance area might add to bullishness in this pair. Consolidation and some pull back likely though.

EUR/CHF Breakout day for the EURCHF with a close above the 20DMA and an intraday test of the 50DMA closing at the 1.21 handle. Neutral bias remains and more such action needed to convince buyers to come to market in size. Consolidation and sideways action likely.

GBP/USD closed just above the 1.62 level following a mixed day and an intraday low testing support at 1.6050. Resistance above is significant and the GBPUSD pair needs to work through Mondays gap to convince traders that this down swing is over – at least for now.

USD/JPY is on a roll with another breakout day and continues to look very bullish. The pair pushed through the 106.50 handle without much resistance and is likely heading higher with the 107.00 handle and above looking more than certain. With that in mind we might also be slightly overbought and some consolidation is to be expected.

USD/CAD traded above the 1.10 handle intraday for the second day yesterday and closed in the 109.50 area. The 1.10 level is very resistant and this pair does not look ready to move higher at least for now. Consolidation around these levels is likely before another try at the 1.10 handle.

USD/CHF flirted with 0.94 handle on Wednesday and continued its upward trajectory. Recent action has been very bullish and a retest and possible breakout above this level is likely – so is a correction.

AUD/USD was dominated by sellers on Wednesday and closed at levels not seen since March of this year. The sell-off is this market is possibly overdone and we are likely to see a bounce back to the 0.92 level at least in the near term. Bearish view intact.

NZD/USD downward trajectory continues with a close just below the 0.82 support handle. This market looks weak and is likely to go lower from here towards the 0.8150 support level. A bounce is also likely but is probably going to be faded by bears who treat these bounces as selling opportunities. Bearish.

 

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