OSB Daily Technical Analysis for October 8, 2014

EUR/USD Positive day for the EURUSD after finding support at 1.2580 handle. Resistance above at 1.2690-1.2700. A break above might extend to upswing to test 1.28 handle. Bearish bias.

EUR/GBP declined intraday but finally managed to edge higher and get above the 20 DMA. Strong resistance just above at 0.7875. A break above opens the market to higher prints to 0.79150 level. Bearish bias with consolidation on going.

EUR/JPY continued to decline on Tuesday breaking below the 137.00 handle following a retest of the resistance at the 200 DMA. Market turning bearish with 20DMA preparing to cross below the 50 DMA. Bearish bias increasing at the moment.

EUR/CHF Volatile day for the EURCHF on Tuesday with strong swings in both directions. Market likely to consolidate at this higher level while it looks for further direction. Pull back from recent run up likely.

GBP/USD edged higher but failed to close above the 1.61 resistance level. Strong resistance above suggest consolidation and possibly a further attempt to get back above. Market remains bearish with recent bounce running out of steam.

USD/JPY continued to sell off on Tuesday finding support at the 108.00 handle. Pair likely to consolidate at this support level and just above the 20DMA. Market remains bullish with current sell-off likely preparing the pair to move higher.

USD/CAD gained back some ground from the previous days sell-off after finding support at the 1.1130 level. A close back above the 1.12 handle opens market to test recent highs. Bullish.

USD/CHF found support at the 0.9565 level. Bullish bias remains in the pair with some consolidation and sideways action likely. Further support below at 0.9536.

AUD/USD continued higher for the second consecutive day finding resistance at the 0.8828 area. Market likely to consolidate in this area and grind sideway for now while it digests recent losses. Bearish.

NZD/USD in consolidation mode with buyers and sellers indecisive about further direction in the pair. Range bound action likely. Bearish bias intact – with pair heading lower in the medium/longer term.

 

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.

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.

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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.

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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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