OSB Daily Technical Analysis for December 16, 2014

EURUSD attempt to rally ran into resistance at 1.2485 area. Clearance of this level extends to 1.25 handle. On the downside support 1.2410-25 just beneath the 20 DMA appers to be solid for now. Market looks ready to consolidate in the 1.2420-80 band short term. Bias remains strongly to the bears.

 

GBPUSD broke lower erasing much of the gains from last weeks trade with a test of the 1.56 handle. A break below extends to 1.5570 and test of recent lows is very much likely at these levels which suggests bears are back in the driving seat. Any upmove likely to run into trouble at 1.5770 area.

 

USDJPY gave some dipping below the 20 DMA on Monday finding support at 117.50. Downside momentum on the rise with a further decline towards 1117.00 handle likely. Resistance now at the 20 DMA/118.00 level. A break below 117.00 extends to 116.40-60 area in the short term.

 

USDCAD broke to new highs on Monday closing at the highs of the day suggesting further upside for the pair. Yesterdays run brings pair into over bought territory indicating possible sell-off and profit taking for US$ bulls. Support in the 1.1590 area. Overall sentiment favors the US$ to strengthen against the Canadian Dollar.

 

USDCHF tried to rally on Monday running into resistance at the 20 DMA/0.9670 level which capped off the upswing. A close above here extends to 0.9710-0.9725 into further resistance . Support holds firmly as 0.9615-25 for now. Pair likely to consolidate at these levels for now.

 

AUDUSD broke to another multi-year low on Monday testing the 0.82 handle for support. Weakness in pair suggests it is a question of time before we break lower. This outcome ultimately leads to 0.80 handle. Bounces or upside moves are likely to be short lived as consistent buyers are very thin on the ground.

 

 

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