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Asian Session Notes 8/31/12
AUDCAD
Resistance: 1.0226 minor / 1.0259 minor / 1.0294 minor
Support: 1.0200 strong / 1.0164 moderate / 1.0122 moderate
We have AUDCAD selling off to the 61.8 Fib retracement of its May 23 rally with daily indicators suggesting a bearish markets, stochastic oversold and macd’s continuing to head lower. Note we have a wide gap between prices and the EMA lines suggesting mean reversion risk is present. From the 4H picture we have a flat macd line with the same values as its signal while stochastic is oversold. Hourly indicator for their part has a bullish divergence in stochastic while macd’s is beginning to bottom and price charts appear to have a small double bottom. Immediate risk calls for a bounce off 1.0202 possible triggering the double bottom for 1.0259. Use tight stops under 1.0202 for any buys off the floor.
AUDUSD
Resistance: 1.0311 minor / 1.0344 minor / 1.0368 strong
Support: 1.0276 minor / 1.0255 moderate / 1.0211 strong
Aussy gave us a follow through sell-off for our daily breakout of 1.0368 Monday dragging us closer to the 1.0211 target for the swing, Daily indicators has stochastic crawling in oversold levels while the macd line continues to head down. In intraday charts we continue to see a confluence of bears from the 4H picture stochastic crawling in oversold areas while the previous candle was a closing bozu. Hourly charts however has a confluence of buys in dthe works with macd bottoming out and stochastic seeing a bullish divergence as we form a possible double bottom. Immediate risk calls for the double bottom to be fully formed and possibly triggered for a pullback to the key resistance area at 1.0368.
EURUSD
Resistance: 1.2523 minor / 1.2561 minor / 1.2588 strong
Support: 1.2494 minor / 1.2465 minor / 1.2441 strong
With the sell-off in late European trade we had the day ending closer to its daily double top trigger at 1.2465 with indicators seeing stochastic ease off some more amd the macd line topping off poised for its own bearish crossover. Note we however face a strong support just under 1.2465 with the previous 1.2441 breakout point and 21D EMA. In the lower time frames we have mixed signals with 4H stochastic crossing higher and macd’s heading down. This as hourly charts for their part has macd bottoming out and stochastic heading higher. For now we prefer remaining sidelined looking for hourly charts to stall under resistance perhaps signalling the next attempt at the 1.2465 pattern trigger is in the works.
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2012-08-31 00:26:13
Source: http://www.fxinstructor.com/blog/asian-session-notes-83112
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