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Asian Session Notes 8/23/12
AUDUSD
Resistance: 1.0529 moderate / 1.0553 minor / 1.0578 moderate
Support: 1.0495 minor / 1.0468 strong / 1.0431 minor
As with the rest of the dollar pairs we have Aussy with a sharp rally in afternoon New York trade bouncing off the previous pullback lows to suggest that the primary trends higher high and higher lows are back in play. At the close we saw a long tail and large body as well with indicators seeing daily macd bottom out and stochastic push for overbought levels. In the 4H level we have a confluence of buys with stochastic pushing overbought and macd just crossing higher. Hourly indicators has a new bullish crossover inside overbought territory while macd is rising. Consider longs at market with a double bottom just triggered and bullish intraday setup along with the daily stochastic. Note we have flash Manufacturing PMI for China from HSBC at 0230GMT weak numbers could dampen the Aussy rally.
XAUDUSD
Resistance: 1662.94 moderate / 1671.54 minor / 1681.19 moderate
Support: 1647.62 minor / 1635.29 strong / 1626.67 strong
After the previous rejection from 1626.67 we have seen Gold bounce off the previous daily triangle resistance line, pattern breakout line from July, pushing past key resistances at 1625.67 and 1635.29. Among indicators Wednesday’s rally has taken past the 200D SMA, dragging stochastic further into overbought levels and forcing the daily macd’s to open higher some more. Intraday we are also seeing a similar confluence of buys with stochastic overbought in both 4H and hourly charts while macd is rising. Note hourly candles are poised to trigger a flag pattern with 1677 as its target though absent new catalyst we do not expect to see a quick rush to the said price. Consider buys at market for 1662 possibly 1.1671.
GBPUSD
Resistance: 1.5900 minor / 1.5932 moderate / 1.5963 minor
Support: 1.5871 minor / 1.5841 minor / 1.5804 minor
Following the sharp rally we have Cable just under the 61.8 Fib retracement of the sell-off from April 30 at 1.5900. With yesterdays rally we have Daily indicators bullish with stochastic pushing further into overbought levels and macd’s opening higher. In 4H charts we have a confluence of buys with stochastic pushing back into overbought levels and macd’s rising. Hourly charts for their part has stochastic crawling overbought while macd is also on the rise. For now immediate risk is a close above 1.5900. A push past the said price and subsequent base building will be argument for going long. Take too long to break higher and a distribution under 1.5900 will be argument for eventually jumping short for a pullback.
EURUSD
Resistance: 1.2552 moderate / 1.2573 moderate / 1.2614 minor
Support: 1.2512 minor / 1.2487 minor / 1.2444 strong
Wednesday saw a follow through rally to the daily level breakout of 1.2444 the day before as market saw QE3 potential from the latest FOMC minutes. At the moment we have prices just under the 1.2553 initial target for the break out, a moderate resistance. Indicators for their part has daily stochastic overbought and macd’s on the rise. From the lower time frames we have a confluence of buys with a flat triggered in 4H charts and indicators showing an overbought stochastic and rising macd. Hourly indicators for their part are also bullish with stochastic still overbought and macd above its signal. For now we prefer looking for a pullback with shorts from just under 1.2553 and tight stops.
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2012-08-22 19:26:49
Source: http://www.fxinstructor.com/blog/asian-session-notes-82312
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