OSB Daily Technical Analysis for October 15, 2014

EUR/USD declined on Tuesday and got back in line with general longer term trend testing support at the 1.2640 area. Pair likely to test recent lows at the 1.25 area. A close below this level extends to lower prints in the 1.20 area.

EUR/GBP continued to rally finding resistance at 0.7960. Momentum build-up likely to extend price into the 0.80 area over the short term which is a strong resistance area. Overall bearish bias remains. A close above the 0.8080 changes that view.

EUR/JPY sold off and found strong support at the 135.00 handle. Overall the pair looks bearish technically and a close below this level is likely to initiate a further sell off. A bounce back above 136.70 resistance might extend to a test of the 200 DMA at 137.65. Bearish.

EUR/CHF declined finding support at 1.2070. Pair is looking bearish after five consecutive down days. Support below at 1.2060. A bounce likely after the recent sell-off.

GBP/USD essentially collapsed through the 1.60 handle and tested the 1.59 area dipping below intraday. The pair is looking weak and likely to retest 1.59 support area again. A close below suggests further downside with 1.5820 being the next big support area. Bearish – sell only market at the moment.

USD/JPY dipped below the 107.00 handle initially on Tuesday which prompted buyers to step in and push price higher for the day. This suggests a bounce is likely to occur in the next couple of sessions following the recent sell off in the pair. Resistance above is at 107.80 and 108.00 further above from there.

USD/CAD broke out on Tuesday pushing through resistance and recent highs to test the 1.13 level with strong bullish momentum picking up. The market is likely to push higher from here before hitting significant resistance. Bullish.

USD/CHF Positive day for the USDCHF which found resistance 0.9535 area. Pair is likely to continue consolidating in this area for now. Bullish bias.

AUD/USD sold off on Tuesday getting back in line with its downward trajectory and breaking below the 0.87 handle. The market is significantly bearish is lower prints are imminent going forward. Bearish sell only market.

NZD/USD sellers took control of the pair on and pushed price lower which found support in 0.7820 area. A test of recent lows at the 0.77 handle is likely. A close below this level suggests lower prints in the 0.75 area might be on the map for the Kiwi dollar.

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.

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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.

10. Successful trading and money management is not about intelligence. It is about Patience, persistence and discipline.

 

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