Monday December 8: OSB Daily Technical Analysis – Currency pairs 

OSB Daily Technical Analysis for December 8, 2014

EURUSD closed below the 1.23 handle for the first time since August 2012 on Friday. Downside support extends at 1.2230-50 area although a bounce back above into 1.2350 resistance area likely. Market heading to a test of the 1.2200 a break of which see the EURUSD imminently opening up the path to the 1.20 handle with time.

GBPUSD weakness and selling pressure saw the pair closing below 1.5600 and making a new yearly low on Friday. The bears are firm in control of price action in the pair now with downside support at 1.5525-40 ultimately leading to a test of the 1.5500 handle. One way sell only market.

USDJPY smashed straight through the 1.20 handle on Friday ending the day at new 7 year high. Bullish run and up leg shows no sign of topping at the momentum suggesting further upside leading into 122.00-50. On the downside any sell offs look like entry points to bullish traders at the moment as pair looks set to reach out to June 2007 highs in the 123.50-124.00 area. Support at 120.20-40.

 

USDCAD broke out on Friday making a new high at 1.1475 before withdrawing to lower ground on the close. Price action suggests pair likely to pull back further in the short term possibly into support at 1.1350-80 area. A break below extends into 1.13 handle. On the upside a break above Fridays high extends to the 1.15 handle.

Rally and test of the 0.98 handle which was cut short by one pip on Friday driven higher by US Non Farm Payrolls. Pair continues to be driven by US$ momentum and likely to continue heading higher. A close above 0.98 extends to May 2013 highs at 0.9820-40. On the downside support in the 0.9740-60 area.

AUDUSD continued to break down on Friday hitting yet another YTD low flirting with the 0.83 handle. A close below opens the path to the 0.8250 handle which is strongly supportive. Weakness in the pair does not allow confidence for much of a bounce or sustained buying. Strongly bearish.

 

NOTE

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