| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Asian Session Notes 5/10/13
GBPUSD
Resistance: 1.5469 minor / 1.5486 moderate / 1.5520 moderate
Support: 1.5422 moderate / 1.5378 moderate / 1.5348 moderate
Cable sold off in European midday trade with a follow through drop after the close of European markets seeing prices test the moderate support at 1.5422 a Fib level for the sell-off this year. From indicators we now have a confluence of bears with stochastic poised to push oversold and macd also seeing a new bear cross. Prices are just above the 21D EMA. In the lower time frames we are seeing a confluence of bears with stochastic oversold and macd seeing a new bear cross. Hourly charts has mixed signals with stochastic coming off oversold levels and macd’s heading lower. We now have prices well on their way to the daily bullish channel support line though face a series of moderate supports under 1.5348. There talks of a bum steer driving the dollar’s rally Thursday, that being the case we are vulnerable to a pullback. If GBPUSD were to a build a base in Asian trade, look for bounce by the time European markets open. An hourly close under 1.5422 would still be a sell signal.
AUDUSD
Resistance: 1.0095 minor / 1.0148 moderate / 1.0194 minor
Support: 1.0045 minor / 1.0000 psychological/ 0.9967(80) minor
Aussy saw a sharp drop Thursday seeing almost 3 times the average daily range, taking out the range play support line from July of last year, 1.0148. Indicators now show a confluence of bears with stochastic oversold and macd dropping. In the lower time frames we have a confluence of bears from the 4H picture stochastic poised to push oversold while macd has a new bear cross. Hourly charts for their has stochastic coming off oversold levels though we’ve been oscillating around 20 while macd is dropping. Note we have the RBA with a monetary policy statement at 0130GMT this after the surprise rate cut from earlier in the week. Any hint of a renewed easing cycle or concern about macroeconomic conditions with Australian and in key export markets may be seen as a fuel for further weakness possibly taking us down to parity. Absent dovish talk from the RBA we risk a pull back following the sharp drop with the close for the week.
AUDJPY
Resistance: 101.65 minor / 102.05 moderate / 102.33 minor
Support: 101.34(39) moderate / 100.87 moderate / 100.39 moderate
Despite the sell-off in AUDUSD, the big rally in USDJPY courtesy of broad based dollar strength saw AUDJPY holding on to it gains for the most part though closing well-off the earlier highs. Daily indicators are showing mixed signals with stochastic crossing up while macd is just below the signal with little slope to speak off. At the moment we have prices just above your daily pivot point, 101.39. In the lower time-frames we have mixed signals with stochastic heading lower and macd pushing up from the 4H picture. Hourly charts for their part has a confluence of buys. With the RBA release a monetary policy statement we prefer remaining sidelined until then. Though a straddle may be adopted ahead of the release with buy stops above 101.65 and sell stops under 101.34(39). We will hold off on putting the straddle until just before the release at 0130GMT.
EURUSD
Resistance: 1.3044 moderate / 1.3073 moderate / 1.3097 minor
Support: 1.3009 minor / 1.2969 moderate / 1.2933 moderate
Euro saw a sharp sell-off Thursday with the initial drop taking prices under the daily pivot before New York trade saw EURUSD collapsing to S2 in the pivots. In the end we had a close below the daily EMA lines and a new low. Note we have had a broadening pattern in Euro since April, with the move making our support line vulnerable. Indicators wise we have a confluence of bears macd’s heading lower and stochastic poised to push oversold in our daily charts. Intraday we have stochastic oversold and macd’s heading lower from the 4H picture. Hourly charts are looking mixed with stochastic coming out oversold areas, though vulnerable for a new bear cross as price action heads back down again. Hourly macd is bearish. Given the break of daily EMA lines we prefer looking for a rejection from 1.3044 for a drop to the broadening pattern’s support line around 1.2933.
Source: http://www.fxinstructor.com/blog/asian-session-notes-143
