OSB Daily Technical Analysis for November 11, 2014

EUR/USD declined on Monday after rallying and finding resistance at the 1.25 handle. Pair is likely to gyrate at these levels as it looks for further direction. Support below at 1.2360. Bearish.

EUR/GBP declined slightly after hitting resistance at the 20 DMA at 0.7860. The pair is in consolidation mode and is likely to remain within a tight range for now. A close below 0.78 extends to 0.7750. Overall longer term bearish.

EUR/JPY sold off in the early session and managed to climb back and close slightly negative for the day. The pair appears to be well supported at the 142.00 area and is likely to bounce around here before finding new direction which is likely higher. Bullish bias remains.

EUR/CHF The EURCHF continues to edge lower and getting ever close to the 1.20 handle. Weakness is in the Euro continues to drive this downtrend and the question is to what extent the SNB will provide support for pair. Neutral.

GBP/USD  sold off on Monday closing at the lows of the day. The pair continues to be weak and remains in a one way sell only market. Support at 1.5840 and further below at 1.58. A close below extends to the 1.5760 handle in the short term. Overall bearish bias.

USD/JPY The USDJPY rallied briefly hitting resistance at the 115 level. Bullish momentum is on the rise and a break above the 115 handle is a question of time. This market appears to have room to run higher with USD strength supporting this bull run. Bullish.

USD/CAD rallied after finding support at the 1.13 handle during intraday trading on Monday. The pair is likely to continue higher with a test of resistance at the 1.14 handle very likely. A close above extends to recent highs 1.1450 and ultimately through to the 1.15 handle. Bullish.

USD/CHF rallied on Monday after finding support at the 0.9615 handle during intraday trading. The pair is likely to head higher over the next several sessions with a test of recent highs at 0.9730 and further resistance at 0.9750-80. Bullish.

AUD/USD declined on Monday after rallying and hitting resistance at the 0.8680 handle. Weakness in this market is prevalent and upswings are being sold into by bears. Bearish bias in intact and over the medium term pair is looking to test the 0.85 handle.

NZD/USD attempted to rally in the early session on Monday climbing above the 0.78 handle but was soon sold into pushing the pair into negative territory for the day. The Kiwi is in sell only mode and is likely head lower from here. Support at 0.7680-40. 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.

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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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