OSB Daily Technical Analysis for November 6, 2014

EUR/USD The EURUSD closed below the 1.25 handle for the first time. This suggests more downside for the pair. Support below at 124.35-15 which is likely to be tested in the next several sessions. Overall sentiment for the pair is very bearish with medium term price target in the 1.20 range being a strong possibility.

EUR/GBP  sold off on Wednesday finding support at the 0.78 handle and bouncing higher. The pair appears to be building a solid base at this level and is likely to edge higher in the short term. Bearish bias remains intact.

EUR/JPY continued to rally on Wednesday breaking through the 143 handle with ease. The bulls are in total control of this market and the December 2013 highs in the 145.00 area looks like a very realistic target. Resistance above at 143.50-144.00. Bullish.

EUR/CHF broke below the 1.2040 handle testing support in the 1.2030 area. The pair is currently at a level not seen since November 2012. SNB support is likely to kick in and cause a bounce in the next several sessions as price edges closer to the round 1.20 figure. Neutral.

GBP/USD sold off and broke below the 1.59 handle where it found support at the 1.5870 area before turning back and to close at 1.5974. Yesterday’s action and upswing suggest that the pair is well supported below 1.59 and is likely to bounce higher from here possibly into the 1.60 area.

USD/JPY rallied above the 114.00 handle closing near the highs of the day on Wednesday and testing the 115.00 handle. Resistance at this level is likely to cause some selling/profit taking. Bullish sentiment remains strong with dips more apt to be faded. Support at the 114.00 area.

USD/CAD  rallied initially breaking above the 114.00 handle only to pull back and close negative for the day. Support is at the 113.50-70 area. Pair likely to consolidate recent gains prior to finding any further direction. Bullish.

USD/CHF  rallied on Wednesday finding resistance at the 0.9660 area. A close above extends to 0.9680-0.9700. Pair likely to enter consolidation mode as it digests recent gains. Support below a 0.9580. Bullish.

AUD/USD sold off hard on Wednesday breaking below the 0.86 handle and making a new low. Bears are back in control of the Aussie dollar which is likely to head lower. Support below at 0.8550-25. Bearish.

NZD/USD broke lower dipping below the 0.77 handle finding support at 0.7680 and making new lows. The pair is likely to enter a new down leg which might lead to lower prints in the 0.75.00 area in the mid-term. Bearish.

 

 

NOTE

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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.

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