Friday November 21: OSB Daily Technical Analysis – Currency pairs 

OSB Daily Technical Analysis for November 21, 2014

EURUSD sold off in the early session testing the 1.25 handle for support which stood the test of bearish sellers. The dip was bought into by short covering stops triggered at this level pushing price back up to the 1.2550 area where the pair spent the day oscillating back and forth from to close the day essentially unchanged.

Neutral day for Cable which went back and forth suggesting indecisiveness and lack of true direction and testing the 1.5740 area for resistance. Bullish traders not present in numbers to push through 1.5750-90 area needed to give pair momentum for higher prints. Strong bearish sentiment dominates.

 

Spike higher and new multi year high for the USDJPY which continues to rally and has made new highs almost every trading session this week. A likely breather from the recent run up is likely with a test of support in the 117.60 area. A close below suggests further correction and consolidation.

USDCAD attempt to rally faltered after running into strong resistance in the 1.1370 area only to sell of and break below the 1.13 handle where it found buyers to prop up the price in this area which also happens to be the 20 DMA. Market looking to bounce from here however upside momentum still somewhat weak for now.

Light trading session for the USDCHF which made modest gains on the day. Action more imminent in the EURCHF where the SNB appears to be signalling to the market that intervention is possibly around the corner. Market rumours suggest SNB looking to diversify EUR reserves pile possibly into other currencies.

AUDUSD sold off in early session breaking below the 0.86 handle and testing support at 0.8560 area. Pair appears to be oversold and is likely to bounce from here making an attempt to climb back over the 0.8650 resistance level. The market is trading within the 0.85-0.88 range however a break below 0.8500 opens the market to new down leg which a possible target in the 0.8250 area.

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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