Tuesday November 4: OSB Daily Technical Analysis – Currency pairs
OSB Daily Technical Analysis for November 4, 2014
EUR/USD closed below the 1.25 handle on Monday continuing its downward trajectory. Yesterday’s price action suggests a short term bounce back is imminent at this level however is overall bearish for the pair. Lower prints are an almost certainty in the mid-longer term with support being at 1.2380-1.2400. Bearish, sell only market.
EUR/GBP The EURGBP continued to break down on Monday breaking below the 0.78 handle on intraday trade but managed to close back above. Support at this level is significant and likely to cause a bounce. A close below 0.7780 opens the way for further downside in the pair. Bearish.
EUR/JPY continued to rally on the back of BOJ support clearing through the 142.00 handle. Rapid rise, covering five big figures in two trading sessions is likely to cause a strong pullback possibly back to the 140.00 area. Market remains very bullish over the medium term.
EUR/CHF continues to find support at the 1.2050 level and remains in a tight range. This level appears to be the bottom of the range and any dips below are likely to be bought into. Neutral with limited upside potential.
GBP/USD tried to rally but found resistance at 1.60 too strong to manage to remain above. Market likely to retest the 1.60 handle again and possibly rally higher towards the 1.6075 area in the short term. Bearish longer term outlook remains intact.
USD/JPY gapped higher and rallied straight through the 114.00 handle on Monday. Bullishness in the pair is likely to lead to higher prices in the mid-term. A pull back is likely in the next several sessions following sharp rises. Support at 1.1230-50. Bullish.
USD/CAD rallied higher finding resistance at the 1.1375 level on Monday. Pair likely to retest this level as it attempts to break above the 1.14 handle. Some pull back is likely as the pair gathers momentum to push higher. Bullish.
USD/CHF pushed higher on Monday trying to get above the 0.97 handle which appears significantly resistive. Pair remains bullish on US$ strength. A close above the 0.97 area extends to 0.9720-50.
AUD/USD gapped lower on the open effectively giving back gains from recent weeks and also suggesting that significant weakness in the pair remains. Support is at 0.8650-80 and a close below is likely to see the pair making new lows. Bearish.
NZD/USD The NZDUSD opened lower and headed south from there on Monday finding support at the 0.77 handle. A close below opens up the way for new lows with support at 0.7660-80. Bearish.
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