OSB Daily Technical Analysis for October 23, 2014

EUR/USD sold off closing below the 1.2650 support area suggesting further downside and a test of the 1.26 handle. A close below extends to bottom of the current range at in the 1.25 region. Bearish.

EUR/GBP climbed higher piercing both the 20 and 50 DMA on an intraday basis but failed to hold above closing just above 0.7875 support area. Further support at 0.7850. Lower prints – bearish bias.

EUR/JPY continued to sell off in the Tuesday session closing below 135.50. Support further below at 135.10-00. Bearish bias intact.

EUR/CHF in a consolidative mode slowly grinding downwards. Support at 120.60-50 which is close to the bottom of the current range. A bounce is likely in this area. Neutral bias.

GBP/USD sold off closing below support at 1.6050. Further support at 1.6020. Pair likely to retest the 1.60 handle. A close below extends to recent lows in the 1.59 vicinity. Bearish.

USD/JPY continues in consolidation more testing resistance above at the 20 DMA which is at 107.35. Pair looking to push higher but finding strong resistance above in the 107.30-60 area. A close above extends to 108 as a first call. Overall bullish with waning momentum.

USD/CAD rallied up to test resistance in the 1.13 region during the Wednesday session only to turn back and close at 1.1217. Volatile session and bounce from support at the 20 DMA suggests pair is looking to build up strength to head higher. A retest of the 1.13 handle is likely.

USD/CHF Breakout and close above the 0.95 handle for the USDCHF. Resistance above at 0.9540-50. Clearing this area extends to 0.9580 and a possible test of the 0.96 handle.

AUD/USD Volatile day for the Aussie dollar which essentially closed unchanged. Further consolidation and range bound action likely. Bearish bias remains strong however pair might have hit a bottom for now.

NZD/USD broke below the 20 DMA finding support just above the 0.79 handle. Pair continues in consolidation with a likely retest of the 0.79 handle. A close below extends to support at 0.78 and a possible revisit of recent lows in the 0.7750-00 area.

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.

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9. You will fail to stick to your plan. The sooner you do the quicker you can move on and correct your mistakes.

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