OSB Daily Technical Analysis for October 13, 2014

EUR/USD decline and test of support at 1.26 handle on Friday with a failure to remain above resistance at 1.2680-90. Pair remains weak and in bearish mode. Retest of 1.25 handle is likely. Sell only mode.

EUR/GBP consolidation and negative day after breaking above 0.7875 resistance and testing 0.79 handle. Resistance and lack of upside momentum is prevalent is the pair at the moment. Consolidation phase with more grinding around at this level.

EUR/JPY sell-off on Friday breaking below the 136.00 handle with ease. Market is now is now in bearish mode from a pure technical perspective. Support at 135.50 and further below at 134.90. Bounce back from recent sell off likely.

EUR/CHF decline and break below the 20 and 50 DMA’s finding support in the 1.2080 area. Pair likely to consolidate and bounce back in the short term following four consecutive down days. Range bound trading in the 1.2080-1.2125 range likely.

GBP/USD Decline and test of the 1.60 support area for the GBPUSD. Pair appears well supported in this area and is likely to bounce higher. Resistance in the 1.6180-16200 area. Ultimately this pair remains in a bearish, sell only mode for now.

USD/JPY Further sell-off for the USDJPY pair on Friday which found support at the 107.60 area. Market likely to test support further at the 107.00 handle and further below at 106.80. Market looking to form a base prior to any bounce back. Neutral for now.

USD/CAD The USDCAD market pushed above the 1.12 handle on an intraday basis but failed to close above on Friday. A close above this level is likely to extend to previous high in the 1.1250 area. Pair remains in a bullish consolidation mode.

USD/CHF Positive day for the USDCHF on Friday closing higher on the day. Resistance above at 0.96 area appears significant. Pair likely to consolidate and seek to gather momentum prior to attempting to push higher.

AUD/USD sold off hard on Friday getting back in line with it longer term trend. Pair closed below the 0.87 handle and managed to find support at the 0.8680 area. Consolidation and range bound activity at these levels is likely.

NZD/USD closed negative for the day on Friday with a brief dip below the 0.78 handle during the day. Pair likely looking to consolidate in the 0.78-79 range prior to finding any further direction.

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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