OSB Daily Technical Analysis for October 31, 2014

EUR/USD The EURUSD sold off during trading on Thursday dipping below 1.26 and finding support in the 1.2545 region. Pair very likely in the begging of a new down leg which is very likely to test recent lows at 1.25. Bearish.

EUR/GBP failed to get above the 0.79 handle for the eighth consecutive trading session. This suggests that there is only one way this pair is likely heading and that is down. Support in the 0.7850 area. Consolidation in a tight range.

EUR/JPY rallied above the 200 DMA and the 138.00 handle during intraday trading on Thursday. Upside momentum is on the rise with a close above the 138.00 handle extending price to 138.80-139.00. Bullish.

EUR/CHF grinding lower during Thursday’s trading. The pair appears to be establishing a base at 1.2055 area and is likely to continue bouncing around in the vicinity. Neutral.

GBP/USD The GBPUSD sold off during intraday trading dipping below the 1.60 handle and finding support at the 1.5950 handle. The market looks like its ready to head lower and a close below the 1.5950 handle extends to recent lows at 1.5870-90. Bearish.

USD/JPY rallied and managed to close above the 109.00 handle on Thursday. This suggests the pair is preparing for a new upswing. Pair is again looking very bullish and is likely to head higher in the next several sessions.

USD/CAD had a volatile session and closed essentially unchanged from the previous days session without managing to get above the 20 DMA. Support below at 1.1165 and resistance above at 1.1220. A close above extends to 1.1250-70. Bullish bias remains intact.

USD/CHF The USDCHF climbed higher on Thursday managing to briefly get above the 0.96 handle before correcting lower and closing in the supportive area of 0.9550. Pair is setting itself up to go higher and a close above 0.96 opens that way. Bullish.

AUD/USD rallied on Thursday finding resistance at 0.8850 too strong to get above. Pair appears to be entering a consolidation phase at this higher level. Support below at 0.8775. Bearish with a somewhat neutral stance for now.

NZD/USD edged higher managing to remain above the critical 0.78 handle throughout the day following the sell-off from the previous session. Pair in consolidation and trading range between 0.7750-0.7900. Neutral.

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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