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.

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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5. Your goal as a trader is to execute your plan and manage risk.

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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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