OSB Daily Technical Analysis for November 13, 2014

EUR/USD rallied into the 1.25 handle which proved too resistive to climb over. The pair has tried and failed to remain above for three sessions in a row which suggests that further downside. Support below is at the 1.2360 area. A break below indicates lower prints in the 1.2250 area in the mid-term. Bearish. EUR/GBP  rallied above the 20 DMA closing above the 0.78 handle and get close enough to the 0.79 area to test the 50 DMA for resistance. Bullish momentum is on the uptick and suggests this bounce could have some continuation. A close above resistance at the 0.79 area is likely to prove if this is the case. Overall longer term bearish bias remains.

EUR/JPY  sold off finding support in the 143.50 area. Further support below at 143. Pair remains bullish and is likely to consolidate at this higher level prior to moving higher with the 145 being a realistic target. Bullish.

EUR/CHF continues to bounce off the 1.20 handle with no sign of change in direction or momentum. Pair is effectively best left alone as it remains in this tight range. Resistance above at 1.2040.

GBP/USD  sold off on Wednesday making new lows at the 1.5770 area. This suggests that the pair has now entered a new down leg with a likely decline into the 1.55 area. Any bounces during this phase are likely to be short lived. Bearish.

USD/JPY The USDJPY sold off briefly during the early session on Wednesday finding support just below the 115 handle. The pair is well supported in this area and is likely to continue bounce off this area again as it tries to go higher. Overall strength in the USD suggests higher prices for this market. Bullish.

USD/CAD sold off during Wednesday’s session finding support at the 1.12 before bouncing back up and closing above the 1.13 handle. Pair remains bullish and is likely to consolidate at this level. A close above resistance 1.1355 extends back to the 1.14 handle. Bullish.

USD/CHF appears to be stuck in a range and well supported below at the 0.9620-40 area. Bullish momentum appears to have waned and the pair looks to continue trading sideways for the next several sessions.

AUD/USD  rallied briefly finding resistance at the 20 DMA in the 0.8720 area. Further resistance is at the 0.8755 area which the pair has had significant difficultly get over. Bearish pressure remains strong in this pair and bounces like this one are more likely to be treated as selling points than indicators to get long the market. Bearish.

NZD/USD managed to climb above the 20 DMA on Wednesday and break through resistance at the 0.7850 area. The pair is likely to face strong resistance going into the 0.7900-20 area which could act as a turning point to this upswing. Overall bearish bias remains intact.

 

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.

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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7. Be ruthless with losing trades. Successful traders are patient winners not patient losers.

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9. You will fail to stick to your plan. The sooner you do the quicker you can move on and correct your mistakes.

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