OSB Daily Technical Analysis for October 6, 2014

EUR/USD Sharp sell-off in the EURUSD dropping below the 1.25 handle briefly. A close below here extends to support at the 1.2465 range and further below at 1.2380 in the medium term. Pair is significantly bearish and in sell only mode.

EUR/GBP failed to push above resistance at 0.7860-65 area on Friday and closed lower for the day, consolidating previous session’s gains. Support below at 0.78 remains firm. Pair looking for direction, somewhat neutral bias for now but ultimately bearish in the medium/longer term.

EUR/JPY essentially unchanged on Friday after trying to get back above the 200 DMA. Support in the 137.05 area and 136.65 below. A close below these support levels might extend corrective down move further towards the 135.00 handle. Neutral – wait and see approach.

EUR/CHF found the strength to break out above 1.21 handle and the 50 DMA on Friday. Resistance above is in the 1.2125 area with 1.21 now becoming support. Further upside and consolidation at higher prices required to convince that this up move has legs in it. Bullish momentum gathering.

GBP/USD sell-off on Friday slicing through 1.60 handle signalling a “sell only” market with further downside becoming imminent. Some bounce back is likely. Support in the 1.5925 area. Bearish.

USD/JPY broke higher on Friday essentially gaining back the losses from the two previous sessions. Resistance above at the 1.10 handle. A close above reconfirms bullishness in the pair and extends higher possibly to 1.11-1.12 area. Bullish.

USD/CAD pushed close to yearly highs on Friday and closed above the 1.12 handle for the first time in this up move. This market is significantly bullish with fundamentals to support this momentum. Higher prices imminent. Bullish.

USD/CHF Dollar strength pushed the USDCHF higher on Friday hitting 52 weeks highs. Fridays up move likely to trigger some pull back but ultimately this pair is going higher. Bullish.

AUD/USD resumed it downward trajectory on Friday and gave back all gains from Thursday’s session and more. Close below 0.87 handle puts the bears firmly in control and we are now at price levels not seen since April 2010. Bearish – one way market for now.

NZD/USD Sell-off in NZDUSD on Friday finding support at 0.7750 handle. Market continues to flirt with 52 week lows and likely to test 0.77 handle. A close below extends price to 0.7660. Bearish.

 

NOTE

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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.

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