OSB Daily Technical Analysis for October 1, 2014

EUR/USD sell-off on Tuesday with a dip below 1.26 handle. Support below at 1.2550 and 1.2520 further down. Resistance in the 1.2680 area. Bearish.

EUR/GBP closed below 0.78 handle on Tuesday with a test of support at 0.7770 and bounce back to close just above. Price action suggests further downside for the EUR against the GBP. Bearish.

EUR/JPY  forming a base close to the 20 DMA at the 138.60 area. Further support below at 138.20. A close above 139.00 key resistance level required to recommence next up leg. Consolidation and some range bound action in store. Bullish.

EUR/CHF well supported at the 1.2050 level with resistance above at the 1.2075 area. Range bound.

GBP/USD Mixed day for the GBPUSD with an intraday dip below 1.62 handle only to close just above. Pair likely to grind it out here prior to commencing next down leg. Bearish with possible retest of recent lows in the 1.60 area.

USD/JPY Bullish day and close higher for the USDJPY. Action suggests a test of resistance at the 110.00 handle is imminent. A close above extends upswing to 110.45 area. Resistance below at 109.00 area. Bullish.

USD/CAD Intraday push above the 1.12 handle for the USDCAD. Recent action suggests the pair is heading higher from here. Resistance at 1.1240. Support below in the 1.1130-10 area. Bullish.

USD/CHF Bullish day and close above the 0.95 handle on Tuesday with an attempt to test the 0.96 handle intraday. Pair looks very bullish and well supported by US Dollar strength. Higher prints in store. Support at 0.95 handle.

AUD/USD found support at the 0.87 handle intraday and managed to close higher for the day on Tuesday. Upswing likely to be short lived with the trend remaining bearish. A close below 0.87 handle extends to 0.8650. Bearish.

NZD/USD Upswing for NZDUSD after recent sell-off. Support at 0.7755 and resistance above at 0.78 handle. Ultimately moving lower with a test of the 0.77 handle a strong possibility.

 

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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5. Your goal as a trader is to execute your plan and manage risk.

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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.

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