OSB Daily Technical Analysis for November 7, 2014

EUR/USD sold off breaking and closing below the 1.24 handle on Thursday making a new two year low. Support at 1.2350-30. A close below extends to 1.22 in the short term. Bearish sentiment appears to be increasing with the 1.20 handle looking very realistic.

 

EUR/GBP rallied during the early session hitting resistance at 0.7860 before selling off to close lower on the day. Support at 0.78 appears to be holding for now. A break below extends to 0.7780-60. Bearish.

EUR/JPY broke through the 144.00 handle during early trading which proved too resistive only to bring sellers in the market who pushed the pair down into the 142.00 area where it found support at 142.15. Pair is overbought and likely to correct and consolidate at these levels.

EUR/CHF The EURCHF sold off making a new intraday low on Thursday and finding support at 1.2030. The pair is likely to bounce higher from here. Neutral with limited upside.

 GBP/USD sell off saw the pound closing below the 1.59 handle making a new yearly low and confirming bearish bias in the GBPUSD. Support below at 1.5780-1.58. Any bounce back is likely to short lived. Bearish.

USD/JPY The USDJPY rallied higher into the 115.00 handle after a sell-off and test of support at 114.00. The USD remains strong against the Yen and higher prices are imminent. Overbought with bullish momentum intact.

USD/CAD closed above the 114.00 handle and tested resistance at the 114.40 area. The Loonie remains in an upswing and is likely to test the 115.00 area for resistance. Support below at 113.50-70. Bullish.

USD/CHF The USDCHF rallied closing above the 0.97 handle making a new yearly high. USD strength is likely to propel the pair higher. Resistance above at 0.9750-80. Bullish momentum on the rise.

AUD/USD sold off finding support at the 0.8555 area making new yearly lows. Price action suggests lower prices are imminent with a test of support at 0.85 imminent. Bounces likely to be short lived as pair heads lower.

NZD/USD closed below the 0.77 handle for the first time making a fresh yearly low. Support below at 0.7660-80. Bearish sentiment suggests pair is likely to be heading into the 0.75 area over the mid-long term. 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.

 

Risk Disclaimer

Forex and CFDs are leverage products, involved a high level of risk and can result in the loss of all your invested capital. Forex and CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, you should ensure that you understand the risks involved and take into account your level of experience.

All information on this website, including any opinion, charts, prices, news, data, Buy/Sell signals, research and analysis is our point of view and is provided as general market commentary and does not constitute any investment advice.

OneStopBrokers.com will not accept any responsibility or liability for losses incurred by customers, visitors or traders as a result of using the data available on OneStopBrokers.com. Read more

 

 

---