Thursday November 20: OSB Daily Technical Analysis – Currency pairs 

OSB Daily Technical Analysis for November 20, 2014

Flat day edging slightly higher on the close after testing resistance at the 1.26 handle. A close above extends to 1.2630-50 area. More consolidation in the 1.25-26 area likely to remain the theme of the day. Holding above 1.2520 on the day maintains short term upside bias.

Early session rally following BOE minutes suggest split decisions on rate hikes. Cable remains in a strong down trend with any attempts to break higher finding sellers overwhelming the balance to the downside. A close above 1.5750 would change short term bearish outlook however longer term negativity likely to remain for some time in the Pound.

Strong showing for the day with a break above 118.00 solidifying the upward path of the USDJPY which continues to be driven by QE. Close at October 2007 high of 117.95 suggests pair to bounce back up from here in the short term with a real target of 120.00 becoming imminent.

Rally run into resistance on the 113.50 area. Bullish momentum and upswing continuation likely with a close above the 114.00 handle being the catalyst for new highs with target price in the 115.00 area.

Spike lower on the early session followed by sideways trading for USDCHF with little action from either side of the fence. Support coming in at the 0.9510-30 area. On the upside a test of 0.96 handle likely as EURCHF continues to drift closer to the 1.20 handle where SNB action becomes a real possibility.

Strong sell off in the AUDUSD pair as USD strength persists giving back mostly all the gains from previous sessions finding support at the 0.8600 area. A break below sees a test of the November 11 low which opens up new down leg potentially leading to the June 2010 lows of 0.83.

NOTE

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