OSB Daily Technical Analysis for November 10, 2014

EUR/USD sold off breaking below the 1.24 handle on Friday finding support at the 1.2360 area and managed to close back above at 1.2545. Price action suggests some support further below at 1.23 however overall longer term trend suggests more downside imminent for the pair. Bearish.

 

EUR/GBP rallied higher hitting resistance at 0.7860 on Friday testing the 20 DMA. Pair continues to test resistance in this area. Failure to clear above suggests that weakness in the pair and a likely breakdown from here. Bearish to neutral stance for the moment as the pair continues to remain range bound for now.

 

EUR/JPY managed to edge higher despite remaining in a tight range for the day. The pair is likely to consolidate and grind it out at these levels as it prepares for another next up leg. Corrections are likely to be short lived. A close above the 143.00 handle extends the pair to new highs. Bullish.

 

EUR/CHF continued to grind lower and managed to find support just below the 1.2030 level. The pair has limited downside at this level however there is little momentum or drive for higher prices. Pair is likely best left alone as the Euro is set to continue weakening and the SNB remains adamant at supporting the CHF at these levels.   Neutral.

 

GBP/USD broke lower making a new low during intraday trading of 1.5790. Support in this area is likely to be retested and a close below suggests more downside for the pair with a likely target of 1.55 in mid-term. Any bounces higher are not likely to usher in any longer term bullishness. Pair is sell only for now. Bearish.

 

USD/JPY sold off lightly during Friday’s trading, closing below the 115.00 handle. Consolidation is currently taking place in the pair as it looks to move higher. Support below at 113.50 and further down at 112.60. Bullish bias remains intact.

 

USD/CAD The USDCAD sold off on Friday dropping below the 1.14 handle after hitting resistance at the 114.50 area. Support below at 113.00-112.80. A close below is likely to extend to 112.50. The pair is overall bullish and any further sell-offs are likely to be bought into. Bullish.

 

USD/CHF declined on Friday finding support at 0.9650 and closing in the area. Support in this area appears significant and a close below this area extends to 0.9580. Pair remains somewhat bullish as US$ strength gathers momentum. A close above Thursdays high extends to 0.9780. Bullish.

AUD/USD found support at the 0.8550 area prior to pushing higher and closing at 0.8630. The pair is likely to continue higher in the next several sessions. Resistance above at 0.8680 and 0.87.00. A close above is likely to extend to 0.8735. Bullish.

NZD/USD broke higher on Friday hitting resistance at 0.7765. The pair is finding support at 0.7660 and is likely to bounce higher. Resistance above at the 0.78 handle is likely to test the mettle of this up move. A close above extends to 0.7830. Mid-long term bearish bias remains intact.

 

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

---