OSB Daily Technical Analysis for October 28, 2014

EUR/USD Positive start to the week for the EURUSD which is finding strong resistance in the 1.2725-50. Recent action suggests the pair is looking to swing higher with a possible test of the 1.28 handle. A close above the 20 DMA extends to this region. Support below at 1.2650-80.

EUR/GBP continues to test resistance at the 20 DMA but still fails to close above even after four consecutive attempts. Resistance in the 0.7890-0.7900 area is proving strong for now. Overall trend is negative and the pair is likely to grind lower. Support at 0.7850-80. Bearish.

EUR/JPY The EURJPY closed below the 137 handle on Monday but managed to remain above the 20 DMA. Pair remains in consolidation mode and within the 135.50-137.50 range for now.

EUR/CHF drifting lower making a new low during this down swing. Support below at 1.2045-55 which is likely to be retested and a possible bounce from there. Bearish.

GBP/USD Upswing in the GBPUSD which is finding resistance at 1.6115. Pair looking to swing higher with further resistance above at 1.6150. Support at 1.6050. Bearish outlook remains intact.

USD/JPY sell-off on Monday after finding resistance at 108.25. Close below the 108 handle likely extends the downswing into the support at 107.50 at first instance. Overall consolidation of recent upswing.

USD/CAD edged higher on Monday as it tries to climb back above the 1.1250 resistance area. A close above extends to the 1.13 handle. Pair remains bullish and is likely to consolidate in this region.

USD/CHF declined testing support at the 0.95 handle and closing below this key support area. Pair remains bullish and is likely to consolidate with the 0.9450 – 0.9550 region.

AUD/USD consolidation day on Monday closing just below the 0.88 handle which has been a strong resistance point that has been retested numerous times in recent trading session. Pair likely to bounce higher with next resistance at 0.8840. Pair remains in a bearish trend with some upside momentum build up.

NZD/USD climbed higher finding resistance just above at the 0.79 handle. A close above extends to 0.7950-80 which is the top of the recent range. Support below at 0.7850.

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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