OSB Daily Technical Analysis for November 3, 2014

EUR/USD Break down of the EURUSD on Friday dipping below the 1.25 handle and making new intraday lows. Pair is significantly bearish and a decisive close below 1.25 extends down leg to 1.2380-90 in the medium term. Bearish.

EUR/GBP sold off finally breaking support at 0.7850 and opening up the way for lower prices. The pair is in a sell only market and any bounces are likely to be short lived. Support below at the 0.78 handle. Bearish.

EUR/JPY Bank of Japan support announcement saw the EURJPY shooting straight through the 140.00 handle covering three big figures. This market is now a buy only market as the BoJ is prepared to support the Yen. Pullbacks and sell offs are likely to be bought into. Resistance at 141.20-40 and higher above at 1.4180. Bullish.

EUR/CHF rallied on Friday testing resistance in the 1.2070 area and failing to climb above. Pair continues its downward trajectory, albeit limited, with support being at 1.2050. Neutral to bearish.

GBP/USD sold off finding support at the 1.5940 area on Friday and to turn back and close just below the 1.60 handle. This market is bearish and likely heading lower further support below at 1.5900-25. Any bounce backs are likely to be short lived.

USD/JPY rallied straight through the 112 handle on Friday on the Bank of Japan announcement. The pair is setting up to go higher and is now on a strong uptrend. Pull backs are likely to act as new entry points for traders adding to existing positions as the BoJ keeps this market supported.

USD/CAD The USDCAD rallied on Friday making a high at the 1.1330 area only to pull back and close at the 1.1265 area. Bullish momentum continues to be on the rise and pair is likely to retest recent highs in the 1.1350-80 area. Bullish.

USD/CHF The USDCHF closed above the 0.96 handle on Friday suggesting a test of recent highs and resistance at the 0.9685 region. A close above extends to the 0.9715-30 area. Bullish.

AUD/USD decline saw the pair dipping below the 0.88 handle on Friday with a close just beneath. Support at 0.8750. A close below likely extends to recent lows at 0.8650. Bearish.

NZD/USD sold off on Friday but found support at 0.7770. Further support below is at 0.7750. A close below this area is likely to see the pair revisiting and making new lows in the 0.7680 area. 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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