Asian Session Note: 10/22/12

NZDUSD

Resistance: 0.8175 minor / 0.8205 minor / 0.8231 moderate

Support: 0.8146 moderate / 0.8108 minor / 0.8083 moderate

Kiwi sold off Friday though it remain inside a daily level range play from 0.8108 to 0.8231. Daily indicators has a confluence of bears with macd’s heading lower wgile stochastic is also pointed down. Note we face an immediate moderate support at 0.8146, congestion floor. In inraday charts we have a mixed view from the 4H picture with stochastic just coming off oversold levels while macd is heading lower. Candlesticks for their part has given us long wick suggesting a retest of the 0.8146 region is in the works. Hourly charts for now has a confluence of buys. Immediate risk calls for a push through 0.8175 though we prefer looking for shorts under 0.8205 with stops above 0.8231. A close under 0.8146 should also be seen as a bearish entry.

AUDUSD

Resistance: 1.0330 moderate / 1.3051 minor / 1.3082 minor

Support: 1.0288 moderate / 1.0251 minor / 1.0217 minor

Friday’s close in Aussy gave us an evening star with prices gapping lower at the open pushing well inside the daily EMA lines. Indicators has the daily stochastic coming off overbought areas while macd for its part is still pointing up. Note we earlier saw the 21D EMA at 1.0303. From the lower time frames we have a confluence of bears in 4H charts with stochastic oversold and macd’s heading lower. Hourly indicators for their part has stochastic heading up while the macd indicators is in the process of bottoming. Given the immediate moderate resistance at 1.0330 we prefer looking for a rejection from the said price.

GBPUSD

Resistance: 1.6017 moderate / 1.6064 minor / 1.6093 moderate

Support: 1.5989 minor / 1.5959 moderate / 1.5910 minor

Friday saw Cable closing below the 55D EMA continuing the search for a lower low in line with the over-all bearish swings of lower highs and lower lows. Among indicators we have daily stochastic oversold while macd is also heading lower. In 4H charts we have stochastic crawling in oversold levels while macd is dropping. Hourly charts however has macd’s crossing up and stochastic heading for overbought areas as a double bottom forms. Note we have a double bottom in the hourly candlesticks though ist break out point is a moderate resistance at 1.6017. Immediate risk calls for our double bottom to be triggered for possibly the 1.6091 region.

EURUSD

Resistance: 1.3042 minor / 1.3076 moderate / 1.3115 moderate

Support: 1.3015 minor / 1.2978 moderate / 1.2930 minor

Euro saw a big bear candle in Friday’s trade though not enough to see the follow through sell-off for the evening star pattern get to the 21D EMA. Indicators has daily macd now poised to cross lower while the stochastic is also heading down. Note mean reversion pressure should persist. From the 4H picture we have macd’s heading lower while stochastic appears to be calling for a bounce coming off oversold levels, candlesticks for their has been generally indecisive since late New York friday. Hourly charts for their part are looking bullish with stochastic poised to move overbought while macd has just crossed up. Immediate risk calls for a bounce perhaps to the moderate resistance at 1.3076 a sell-off area.