OSB Daily Technical Analysis for October 16, 2014

EUR/USD Break out day with a close above 1.28 handle, resistance at 1.2880 and further above at 1.29. Support now in the 1.2750-70 area. Consolidation in at this higher level likely prior to finding further direction.

EUR/GBP rallied straight through the 0.80 handle intraday only to find resistance in the 0.8050 area. Momentum build up suggests the pair is looking to move higher above resistance. Support now at 0.80 handle. Neutral for now with a break above 0.8080 turning outlook bullish.

EUR/JPY tested support at the 135.00 area intraday only to rally and get back above 136.00 handle. Pair looking to build a supportive base at the 135.50 area and consolidate in this region and possible head higher. Note: the 50 DMA is preparing to cross below the 200 DMA which in itself is another bearish signal and suggests further downside.

EUR/CHF continued its descent finding support at 1.2060 area. Weakness suggests pair likely to head lower and test recent lows in the 1.2045 region. Looking for a bounce following six consecutive down days.

GBP/USD Bullish day for the GBPUSD after making finding support at 1.5875. Close above the 1.60 handle suggests buyers are trying to push the pair higher however downward pressure remains overwhelming with pair likely to get back in line with downward longer term trend.

USD/JPY sold off hard piercing through 106.00 handle and the 50 DMA with ease find support just above the 105.00 handle. Rebound from days lows to close just below the 106.00 handle suggest the pair is likely to get above 106.00 handle and stage a comeback of sorts in the next several sessions.

USD/CAD Intraday breakout and rally towards 1.14 handle for the USDCAD ran out of steam and only to see the pair close below the 1.13 handle. Strong support below in the 1.12 region and resistance is at 1.13. A close back above this area opens up the pair for another attempt at the 1.14 handle. Overall bullish bias remains.

USD/CHF fell hard pushing the pair through the 0.94 handle where it found support and closed just below. Resistance above at 0.9450. Pair remains bullish and a close back above 0.95 extends price back to recent highs.

AUD/USD rallied through the 0.88 handle on Wednesday closing just below the 20 DMA at 0.8828. Pair in consolidation range bound mode. Neutral with longer term trend remaining bearish.

NZD/USD pushed through the 20 DMA on Wednesday finding strong resistance just above the 0.80 handle. Pair remains in consolidation and is likely to push higher. Resistance further above at 0.80 and 0.8040.

 

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.

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