OSB Daily Technical Analysis for October 24, 2014

EUR/USD closed essentially unchanged on Thursday forming a hammer. This market does not currently have the strength to push higher. Resistance at 1.28 is strong and any push above is likely to short lived. Overall downtrend remains. Support below at 1.26 and 1.2580 further down.

EUR/GBP rallied during intraday trading but failed to hold on to gains. Resistance at the 0.79 appears to be strong for now and has been tested for two consecutive sessions. Pair remains in bearish stance for now. A close above 0.79 extends to 0.7950 as a first stop however is likely to be short lived.

EUR/JPY rallied on Thursday testing the 137.00 resistance level. The big upswing suggests that the pair is looking to go higher and possibly put in a bottom in the 135.50 region. A close above 137.00 suggests further upside towards the 50 DMA at 137.40.

EUR/CHF continues to consolidate in the 1.2060-80 area. Bias remains to the downside despite the 1.20 Swiss National Bank imposed floor.

GBP/USD continued its downward trajectory briefly breaking below the 1.60 support level. A close below this level suggests further downside and a test of recent lows. Bearish bias.

USD/JPY rallied above the 108 handle managing to hold on to gains. Bullish momentum appears to be building up with a likely test of resistance at 108.45-65. Support below at 107.50.

USD/CAD remained volatile and closed lower on Thursday. Pair remains bullish and appears well supported at the 1.12 level. Resistance above is at 1.1255-75. A close above extends to 1.13. Bullish.

USD/CHF drifted higher forming a hammer on Thursday. Resistance above at 0.9560-80. A close above sees the pair testing the 0.96 handle. Bullish bias.

AUD/USD rallied during the Thursday session but found resistance at the 0.88 handle too much to hold above. Pair closed negative for the day and remains in a consolidative mode with a bias to the downside. Support below at 0.8740-20.

NZD/USD sold off and found support at the 0.79 handle. Pair is likely to trade within its current range of 0.7750-0.8000. Support below at 0.78-0.7780. 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.

 

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