OSB Daily Technical Analysis for October 20, 2014

EUR/USD sold off and closed below the key 1.28 handle and testing support at the 20 DMA. Support below in the 1.2700 area. Pair likely to consolidate in this range as it seeks direction.

EUR/GBP tried to rally finding resistance at 0.7980 and turning back to close negative on the day. Support below at 0.7925 and further down at key 0.7900. Weakness is prevalent and pair likely to grind lower.

EUR/JPY continued to rally on Friday breaking above the 136.50 handle on an intraday level. Momentum pick up suggests that upswing likely to extend back above 137.00 handle and test resistance in the 137.30 vicinity.

EUR/CHF Move higher for the EURCHF which found resistance in the 1.2080 area. Pair continues in a range, resistance above at 1.2083, support below at 1.2055. Bearish bias remains.

GBP/USD Upswing in GBPUSD remains in motion with a break above the 1.61 handle on Friday which proved to be strong resistance for the moment. A close above this level extends to 20 DMA in the 1.6135 range. Momentum currently tilted to the upside despite long term bearish trend.

USD/JPY rallied to close above the 50 DMA with a close at 106.87. Strong resistance above at the 107.00 handle likely to be tested as upside momentum picks up. Support below at 106.30 area.

USD/CAD continues to remain volatile testing the 1.12 handle for support on Friday. Pair likely to bounce around looking for direction with a bias to the upside. Resistance above at 1.1290. Bullish.

USD/CHF rallied towards the 20 DMA where it found resistance at 0.9472, further resistance above at 0.9490-0.9500. Some consolidation likely with range bound action. A close above 0.9535 likely to extend upward move towards 0.9585 area.

AUD/USD rally in the early session run out of steam finding the 0.88 area too strong a resistance level to remain above. Subsequent sell-off saw the pair closing at 0.8742. More range bound action likely with bias being to the downside. Bearish.

NZD/USD dipped below the 20 DMA on Friday finding support at 0.7870. Pair likely to consolidate at this higher level. Bias remains to the downside with further support below at 0.7855. Bearish.

 

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.

6. There will be losing trades and periods. Accept it.

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.

 

Risk Disclaimer

Forex and CFDs are leverage products, involved a high level of risk and can result in the loss of all your invested capital. Forex and CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, you should ensure that you understand the risks involved and take into account your level of experience.

All information on this website, including any opinion, charts, prices, news, data, Buy/Sell signals, research and analysis is our point of view and is provided as general market commentary and does not constitute any investment advice.

OneStopBrokers.com will not accept any responsibility or liability for losses incurred by customers, visitors or traders as a result of using the data available on OneStopBrokers.com. Read more

---