OSB Daily Technical Analysis for October 22, 2014

EUR/USD declined dropping below the 20 DMA and closing below the 1.28 handle which is a strong resistance point. The pair is likely to consolidate in the general vicinity of 1.2640-1.2800 while it looks for further direction. Overall bias is bearish.

EUR/GBP Volatile session for the EURGBP which declined and fell through both the 50 and 20 DMA’s. Pair is finding support at the 0.79 handle at the moment but weakness suggests further declines are in store. The pair is likely to remain volatile for now as it bounces around at these key levels. Further support below at 0.7960.

EUR/JPY sold off but found support at the 136.00 handle after dipping below some. Further support below at 135.80. Pair currently in a wait and see consolidation mode. A close below 135.00 extends to recent lows in the 134 region.

EUR/CHF Consolidation day for the EURCHF which remained traded within a tight range. Pair likely to trade in a low volatility range bound fashion for now. Neutral.

GBP/USD declined on Tuesday falling through the 20 DMA and finding support in the 1.61 area. The pair is facing some strong headwinds as it tries to push above key resistance points at 1.6150-1.62 area if it is going to go any higher. Overall trend remains bearish with support at .6050.

USD/JPY declined during the day and briefly dipped below the 50 DMA only to entice bulls to enter the market and push price higher finding resistance at the 107.00 handle. Momentum is tilted to the upside in this pair and is likely to push higher in the mid-term. Support below at the 106.50 area.

USD/CAD The USDCAD sold off but found support at the 1.12 handle. Support at this level is strong and dips below are likely to cause bounce backs. Resistance above at 1.13. A close above extends to recent highs.

USD/CHF rallied on Tuesday climbing above the 20 DMA. Resistance above at 0.95. A close above extends to 0.9540 as a first stop. Pair is bullish and looking to go higher.

AUD/USD has a volatile session on Tuesday climbing above the 20 DMA and finding resistance at the 0.8832 area. Pair in consolidation mode with some downward pressure. Bearish bias intact.

NZD/USD managed to break above the 0.80 handle intraday on Tuesday on to close just below. The Kiwi is trying to break out however bearish bias remains strong and is likely to find strong selling pressure at it faces key resistance points at 0.80 and above.

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

---