Friday December 5: OSB Daily Technical Analysis – Currency pairs 

OSB Daily Technical Analysis for December 5, 2014

EURUSD sold off in the early session only to bounce off strongly into the 1.2400 level finding resistance at the 1.2450 area near the 20 DMA. Rally driven by ECB announcement to keep powder dry and take a wait and see approach to stimulus action. Further resistance above at 1.2500-30. Support below at now at 1.2325-50.

GBPUSD remains in consolidation mode and continues to go back and forth at current levels without much direction or conviction. A break 1.5580 puts the bears back in control of this pair and extends to support in the 1.5565-40 area. On the upside a break above 1.5725 extends to 1.5765 in the short term. Longer term bearish bias remains intact.

USDJPY ended the day flat after some back and forth action and an intraday break above the 120.00 handle. The market appears ready to go higher with some consolidation at these levels as a retest and close above the 120.00 handle is a question of time.

USDCAD chopped back and forth driven by action in other markets and ECB announcements only to close marginally positive for the day. Resistance above at 1.14 handle needs to be cleared if the pair is going to head any higher and sustain current bullishness.

USDCHF had a strong down day with a sell off and test of the 20 DMA only to rally back up and close above the 0.97 handle. Yesterdays weakness suggests this market might be ready for a pause and perhaps correct further into support at 0.9600-50. Resistance above at 0.9730-50 band.

AUDUSD went back and forth throughout the day bouncing around the 0.84 handle with a bias to the downside. New monthly low confirms further downside potential on the horizon for the pair. Strongly bearish bias.

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.

Risk Disclaimer

Forex and CFDs are leverage products, involved a high level of risk and can result in the loss of all your invested capital. Forex and CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, you should ensure that you understand the risks involved and take into account your level of experience.

All information on this website, including any opinion, charts, prices, news, data, Buy/Sell signals, research and analysis is our point of view and is provided as general market commentary and does not constitute any investment advice.

OneStopBrokers.com will not accept any responsibility or liability for losses incurred by customers, visitors or traders as a result of using the data available on OneStopBrokers.com. Read more

 

 

---