OSB Daily Technical Analysis for October 21, 2014

EUR/USD up-move to start the week with an intraday push above the 1.28 handle. Market appears to be building upside momentum, possibly with a test of key levels higher in the 1.30 vicinity in the medium term. Resistance above in the 1.2840-90 area.

EUR/GBP hovered around the 50 DMA without much direction. Support below is at the 20 DMA which is the 0.79 handle. A close below this area suggests a dip into the 0.7850 support area. Further consolidation is likely with some range bound action as the market works out where to go next.

EUR/JPY bounced from an early session sell-off to close higher and test the 20 DMA. Upside momentum pick up suggests the pair is likely to head higher if it can clear the 137.00 barrier. Strong resistance below at 136.80-137.00.

EUR/CHF declined on Monday and continues to remain within a tight range. The market is likely to continue hovering the general 1.2050-1.2125 area without much direction or significant action. Neutral.

GBP/USD broke above the 20 DMA and key resistance area at 1.6160. Upswing suggests a test of the 1.62 handle is likely and a close above extends to the 1.6250 resistance area. Bullish momentum appears to have some legs and possible to continue pushing the pair higher.

USD/JPY gapped on the open however failed to sustain upward momentum and sold off dipping below the 107 handle. Resistance is above in the 107.40-60 area. A close above this level is likely to see a test of the 108.00. Support below is at the 106.30-50 area. Neutral outlook for now.

USD/CAD  sold of lightly and found support at the 1.1250 area prior to bouncing back up and closing near the high of the day at 1.1282. Market looks to be consolidating in the 1.12-1.13 range with a possible tilt to the upside. Bullish bias.

USD/CHF  fell on Monday after finding resistance at the 20 DMA in the 0.9470 area. Market does not appear to have any strength to move to either the upside or the downside. Bias is somewhat to the downside. Support below at the 0.94 – 0.9390 area.

AUD/USD rallied during the Monday session testing resistance at the 0.88 handle which proved too strong to climb above. A retest of this key area is likely with a close above suggesting a rally into the 0.8870 vicinity. Further consolidation and sideways action is likely as the pair looks for some direction.

NZD/USD broke above the 20 DMA finding resistance at 0.7977. Pair likely to test the 0.80 handle. A close above extends price to the 0.8070 area. Market in range bound mode. Long term bearish bias remains.

NOTE

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