Asian Session Notes: 10/23/2012

AUDUSD

Resistance: 1.0330 minor / 1.0352 minor / 1.0382 minor

Support: 1.0288 moderate / 1.0251 minor / 1.0217 minor

Aussy monday managed to cover its bearish gap from the Wellington open to close right back at Friday’s closing levels. For the moment we have prices just above the 55D EMA with daily stochastic heading lower and macd’s pointing up suggesting indecision. In the lower time frames we have 4H candlesticks looking indecisive flipping colors while stochastic is pointing up and macd is heading lower. Hourly charts for their part has stochastic coming off overbought levels while macd is topping off. Given the mixed signals we prefer remaining sidelined though a close below 1.0288 should be seen as a bearish entry.

EURUSD

Resistance: 1.3076 moderate / 1.3112 moderate / 1.3139 minor

Support: 1.3042 minor / 1.3012 minor / 1.2977 moderate

In the end a day of whipsaws saw Euro closing near its highs just under the 50 Fib retracement level at 1.3076 suggesting a strong technical bounce. From indicators we have macd’s flat while stochastic is more bearish continuing to point lower. In intraday charts we have mixed signals with 4H macd in the process of crossing up while stochastic is also trying to cross down and price charts are looking mixed. Hourly charts for their part has stochastic coming off overbought levels while macd is also looking to cross lower. Look for shorts from just under 1.3076 for 1.3042 as the immediate objective break of which opens the swing low of 1.3012 then on to 1.2977.

GBPUSD

Resistance: 1.6052 minor / 1.6093 moderate / 1.6118 minor

Support: 1.6014 minor / 1.5989 minor / 1.5959 moderate

After the earlier technical correction we saw Cable easing off the days highs to end up with a significant wick in the daily charts. Indicators continue to see a confluence of bears with stochastic oversold and macd’s heading lower while prices for the moment are just above the 1.6014, 55D EMA lines. In the lower time frames we have a confluence of bears with stochastic flat under oversold levels while macd’s are dropping in the 4H picture. Hourly charts for their part has an overbought stochastic trying to cross lower while macd has bottomed out. Overall risk for Cable calls for further weakness to further a pattern of lower highs and lower lows. Key objective would be to test 1.5959 the 38.2 Fib retracement level.