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August 22, 2012: Asian Session Notes
AUDUSD
Resistance: 1.0477 minor / 1.0529 moderate / 1.0578 moderate
Support: 1.04441 moderate / 1.0410 minor / 1.0394 minor
Aussy saw a steady reversal of its earlier gains after the close of European markets to end up with a long wick in daily charts and small white body. The move gave us a lower high with yesterdays coming short of the 1.0529 region. Daily indicators for their part look mixed with stochastic pointing up and macd heading lower. Interestingly our daily close was right around the 21D EMA. From the lower time frames we have 4H stochastic in oversold levels while macd is topping off. Hourly indicators has a confluence of bears while we are currently seeing a sell-off. Look for a close under 1.04441 to confirm a bear market and a search of the next lower low. Base building ahead of the European open may suggest a possible bounce later on.
GBPJPY
Resistance: 1.2519 minor / 125.51 minor / 125.82 strong
Support: 124.96 moderate / 124.59 moderate / 124.22 minor
As with the other Yen pairs we saw GBPJPY easing off in the second half of New York trade following a pullback in the equities from new highs since 2010. Indicators has stochastic coming off overbought areas while macd is still pointing up. Note we can also view yesterdays move as a rejection from the 200D SMA. Intraday we have prices back inside the range play from the past two days with a confluence of bears in 4H macd and stochastic. Hourly charts also has a confluence of bears with stochastic poised to reenter oversold levels. Immediate calls for a pullback to the 125.59 region, our congestion floor for the last two days.
GBPUSD
Resistance: 1.5775 strong / 1.5804 minor / 1.5841 moderate
Support: 13.5744 minor / 1.5681 moderate / 1.5635 minor
After the big rally Cable closed marginally above the key resistance area of 1.5775 with daily indicators now seeing a confluence of buys, the macd indicator heading up and daily stochastic with a new bullish crossed poised to reenter overbought areas. Note at the moment we actually have prices back under 1.5775 with a small double top triggered in hourly charts. In intraday charts we have mixed signals from the 4H indicators as stochastic comes off overbought areas while the macd line is pointing up. Hourly charts has a bearish divergence in stochastic while macd for its part has also crossed lower. Immediate risk is for a pullback, however failure to push below 1.5744 will keep the daily breakout in play possibly for 1.6051 for the rest of the week.
EURUSD
Resistance: 1.2487 minor / 1.2512 minor / 1.2553 moderate
Support: 1.2444 moderate / 1.2417 minor / 1.2375(82) moderate
Tuesday saw the Euro with a sharp rally closing above the 1.2444 previous high, opening the pattern of higher highs and higher lows for the past month. Among indicators we have stochastic overbought and macd’s pushing higher given the break through a strong resistance this suggests a search for a follow through rally. In the lower time frames we appear to be seeing mixed signals. We have 4H macd and stochastic remaining bullish the latter overbought, while hourly charts has a bearish divergence with macd’s crossing lower. Let us see if the bearish divergence pulls prices to the immediate moderate support and look for base building. Consider buys after then with the key price target at 1.2553, use tight stops under 1.2444. Note we also have a double top in hourly charts though with limited room to maneuver if triggered. Alternative bullish entry is a push past 1.2487.
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2012-08-21 21:38:13
Source: http://www.fxinstructor.com/blog/august-22-2012-asian-session-notes
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