OSB Daily Technical Analysis for September 29, 2014

EUR/USD Downside momentum dominating EURUSD. Close below 1.2700 handle extends downside to support at 1.2625-35. Likely medium term target in the 1.2500 area. Pair oversold with some bounce possible in the meanwhile.

EUR/GBP Intraday day dip below 0.78 handle on Friday for the EURGBP only to claw back and close just above. Bearish market biased to the downside. A close below recent lows at 0.7785 opens down move to support at 0.7740-00. Market could break down below this level.

EUR/JPY found support at the 20 DMA forming a doji candle suggesting a selling pause and some indecisiveness. Further support below in the 138.30-00 area. Resistance above at 139.20.

EUR/CHF back in its trading range. Well supported at 1.2055. Resistance at 1.2080-85 level at the 20 DMA. Neutral.

GBP/USD Negative day with move below recent support at 1.6250. This extends down move towards support at 1.6200. Some sideways action and consolidation at these key levels likely. Bearish.

USD/JPY Upswing with a clean close above the 109.00 handle on Friday. Positive for the USDJPY however pair is slightly overbought hence some pullback more than likely in coming sessions before making new highs. Bullish with 110.00 target price a strong possibility.

USD/CAD continued higher on Friday closing above 1.1150 resistance. Strongly bullish with further upside towards 1.1200 handle likely. Some resistance at 1.1190 and just above. Bullish.

USD/CHF Bullish upswing making a new 52 week high on Friday. This is bullish for the pair and extends move upwards to 0.9550-80 level. Bullish – buy only market for now.

AUD/USD sellers dominated action on Friday. Intraday dip below 0.8750 and Friday’s action suggests declines to the 0.8695 handle and further below. Bearish.

NZD/USD Big sell-off for NZDUSD cutting through 0.80 handle with very little support in sight. Bearish action and recent declines suggest the market is heading lower with a likely test of September 2013 prices in the 0.7720-50 area. Bearish – sell only market.

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.

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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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