OSB Daily Technical Analysis for September 1st, 2014

 

EUR/USD Strong downward pressure for the EUR/USD on Friday closing at the lows of the day and below support of 1.3150. The next support level is at 1.31 which is likely to be tested in the next few trading sessions. Continued weakness in this pair suggests that the 1.30 handle might be a realistic target and a level where the next significant support might be. Bearish.

USD/JPY Positive day with a close above the 104 handle for the USD/JPY on Friday. This market is looking strong with a strong appetite to move higher. Resistance is at 104.50-60. A close above that sets the next target at 105. Corrections and consolidative action is to be expected. Overall bullish.

GBP/USD Intraday break above the 1.66 resistance level only to close just beneath. The GBP/USD looks like it might be preparing to move higher following the six week down leg which started in mid-July. A close above 1.66 and subsequently above the 200 DMA might entice further confidence and buyers to step in. The floor for now is 1.65. Neutral – watching for additional bullishness.

EUR/GBP Breakdown of the EUR/GBP pair on Friday holding above the 0.79 level where there is significant support. Action in this market indicates weakness and lower prints. A close below 0.79 and the July low of 0.78975 is likely to act as additional confirmation for bears to add to their short positions. Bearish.

EUR/JPY Fourth unsuccessful attempt of the EUR/JPY to push above the 20 DMA during intraday trading. This failure taken into consideration with Friday’s action and what looks like a shooting star candle is bearish. Strong support at 136.30-20. This market might trade in a range prior to gaining new direction. A close below 136 indicates further downside.

EUR/CHF Lower close for the EUR/CHF. Putting market technicals aside the big question in this pair is: what is the Swiss National Bank going to do next? The SNB appears resolute in holding the 1.20 floor for now hence we see range bound action with potential to test support at the 1.2020-30 levels.

AUD/USD Consolidation on Friday for the AUD/USD with a close just above the 0.9330 support level on Friday. On the upside resistance in the 0.9360 appears to have held the pair back. More consolidation may be on the cards for this market as it gathers additional pace for a potential break above the 0.94 level.

 
NZD/USD A close below the 0.8350 support level for the NZD/USD pair following its intraday effort to test the 0.84 resistance handle which proved too much. The close signifies that this market is preparing for a continuation of its downward trajectory. Next significant support at 0.83.

USD/CAD A positive day and close just above the 50 DMA after strong selling and an intraday test of the 1.08 handle during the day. This market continues to look bullish and a close above the 1.09 level is certainly a positive and would set sights on 1.10. More confirmation needed – possible consolidation and range bound action.

USD/CHF Close at the yearly high for the USD/CHF and above the 0.9180 resistance level. This is bullish for the pair and suggests higher prices to come. Next resistance at the 0.92 handle. Strong support at the 0.9135-40 level.

 

NOTE

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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.

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