OSB Daily Technical Analysis for November 17, 2014

EUR/USD rallied above the 1.25 handle after selling off in the early session. Significant resistance is above at in the 1.2550-80. Pair likely to retest this area and make a push for the 1.26 handle. Overall upswing likely to be short lived. Longer term remains significantly bearish.

GBP/USD sold off on Friday dipping below the 1.56 handle before bouncing back to make for a hammer candle stick. This suggests pair is likely to bounce higher possibly into the 1.5770-90 area. Support below at 1.56 handle which looks like the bottom of the range for now.

USD/JPY broke through and closed above the 116 level. Friday’s action and pullback from the daily high suggests the pair might be over running itself. A further pullback is likely with 115.00-20 being support. Pullbacks are likely to act as buying points for bullish traders. Pair is likely to consolidate recent gains and test higher plains again.

USD/CAD sold off breaking through support and the 20 DMA at the 1.13 handle. Support extends below to 1.1250 area. Pair consolidating at this higher level and is likely to go higher after this down phase. Bullish.

USD/CHF rallied heading higher towards the 0.97 level before dipping below the 20 DMA and closing at 0.9588. The pair is in consolidation mode with support below at 0.9550. Pair remains bullish on the back of USD strength and is likely to continue its mid/longer term trend once the current correction works itself out.

AUD/USD sold off in the early session finding support at the 0.8650 area. This area is well supported in this region. The subsequent rally saw the pair rallying back above the 20 DMA and hitting resistance at 0.8770 on the back of a strong gold market. Overall bearish sentiment remains.

 

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 G6 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.

 

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