OSB Daily Technical Analysis for October 2, 2014

EUR/USD intraday dip below the 1.26 handle and consolidating at this level for now. Pair looking for further direction and possibly forming a short term bottom in this area as traders await ECB interest rate decision. Resistance above at 126.50. Bearish.

EUR/GBP attempt to get above 0.78 met with strong resistance only to close just below. A close above extends price to 0.7875. Support in the 0.7750-60 area. Market most likely heading lower.

EUR/JPY close below 200 DMA slicing through key support levels. This is significantly bearish for the pair. Further support at 137.10. Likely bounce back and retest of 200 DMA at 137.75 which is now resistance. Neutral – wait and see approach.

EUR/CHF Intraday rally in the EURCHF with a push above the 20 DMA. Resistance above at 1.2075 and support below at 1.2050. More consolidation and range bound action likely. Neutral.

GBP/USD finding support at 1.6160 handle and slowly drifting lower. Some bounce and further consolidation likely as pair looks for further direction.

USD/JPY Pull back and correction in the USDJPY on Wednesday. Pair likely consolidating as it looks for further direction. Support below at 108.45 and resistance above at 109.85 and 110.00 further above. A close above 110.00 extends action to higher plains in the 110.80-111.00 vicinity. Bullish.

USD/CAD closed slightly lower on Wednesday following an attempt to break above the 1.1220 resistive area. Market appears to be forming support at 1.1160. Support further below is at 1.1075. Bullish bias intact for now. Pull back from the recent run from 109.00 to 112.00 likely.

USD/CHF attempt to get above the 0.96 handle only to pull back and close in the 0.9560 area. Recent run up likely to bring some consolidation. Bullish.

AUD/USD found support at 0.8660 level and rallied back above 0.87 handle to close at 0.8735. Yesterdays action suggests that pair is oversold and sellers possibly thinning out for now. Some upswing and higher prints likely. Bearish bias remains intact.

NZD/USD Consolidation day for the Kiwi finding support in the 0.7760 area. Possible formation of a base at these levels for now with some upswing in the next several sessions. Bearish.

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.

 

Risk Disclaimer

Forex and CFDs are leverage products, involved a high level of risk and can result in the loss of all your invested capital. Forex and CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, you should ensure that you understand the risks involved and take into account your level of experience.

All information on this website, including any opinion, charts, prices, news, data, Buy/Sell signals, research and analysis is our point of view and is provided as general market commentary and does not constitute any investment advice.

OneStopBrokers.com will not accept any responsibility or liability for losses incurred by customers, visitors or traders as a result of using the data available on OneStopBrokers.com. Read more

---