Asian Session Notes 10/24/12

AUDJPY

Resistance: 82.32 minor / 82.70 moderate / 83.04 minor

Support: 82.02 minor / 81.65 minor / 81.38 minor

As with the Aussy we have AUDJPY rallying following strong CPI reads in Australia and better than previous Flash Manufacturing PMI from China. At the moment we are in the process of reversing Tuesdays big bear candle with daily indicators showing a bullish cross in stochastic while macd is pushing up. In 4H charts we have stochastic coming off oversold levels while macd is bottoming out. Hourly charts for their part has a confluence of buys with stochastic looking to reenter overbought areas while macd has just crossed up. Given the gains already seen we prefer looking for a buy on dips with the 82.70 moderate resistance as our primary objective.

NZDUSD

Resistance: 0.8126 minor / 0.8146 minor / 0.8186 moderate

Support: 0.8100 minor / 0.8080 moderate / 0.8048 minor

We have finally seen a close under the three week congestion floor in Kiwi following broad based risk aversion to see daily stochastic pushing oversold while macd is opening lower once more. In intraday charts we have indecision from the candlesticks while indicators show stochastic coming off oversold levels in the 4H picture and macd’s dropping. Hourly charts for their part has macd crossing higher while stochastic is bearish. Given the daily breakout we prefer looking for shorts from just under 0.8146 or on a close below 0.8100.

GBPUSD

Resistance: 1.5959 moderate / 1.5989 minor / 1.6021 minor

Support: 1.5913 minor / 1.5882 minor / 1.5851 moderate

Cable finally saw a new lower low in keeping with its pattern of bearish whipsaws from the September 21 highs. Daily indicators has an oversold stochastic while macd is down and the EMA lines appear to be poised at getting dead crosses. Note we have prices below the daily EMA lines while we also closed under 1.5959 our previous objective. From the lower time frames we have mixed signals with stochastic coming off oversold levels in 4H charts while macd is dropping and hourly indicators show the opposite as macd’s cross up and stochastic come-off overbought levels. Given the mixed intraday charts look to the immediate 1.5959 moderate resistance. A close above it early in the trading day should signal a technical correction perhaps to 1.6021. Should we fail to get a pullback started use the said price as a sell-off point in European trade.

EURUSD

Resistance: 1.2986 minor / 1.3014 moderate / 1.3041 minor

Support: 1.2951 minor / 1.2934 moderate / 1.2892 minor

Euro saw a huge sell-off in Tuesday’s trade to close under the 21D EMA with prices looking set to test the 34D EMA at 1.2934. Among indicators we have stochastic poised to push to oversold levels while macd are opening lower. From the lower timeframes we have stochastic oscillating around oversold levels while macd is heading lower. Hourly charts for their part look mixed with stochastic heading lower and macd just crossing up. Given the mixed view we prefer remaining sidelined though overall bias is bearish. Consider shorts coming from under the moderate resistance at 1.3014. Failure to get near 1.3014 should allow for the use of 1.2986.

AUDUSD

Resistance: 1.0340 moderate / 1.0368 minor / 1.0411 minor

Support: 1.0288 minor / 1.0242 minor / 1.0203 minor

Following the release of stronger than expected CPI numbers we have Aussy reversing yesterdays losses seeing a sharp bounce on the 1.4% quarter-on-quarter read for headline CPI vis-a-vis a 0.9% consensus. From indicators we have daily macd still flat above the signal line though stochastic is now trying to hook up. Note we have prices just under the daily EMA lines. In the lower time frames we have 4H macd bottoming out while stochastic has come-off oversold areas. Hourly charts for their part has macd’s crossing higher and stochastic coming off overbought levels. Given the catalyst look for prices to close above 1.0288 and rally for the moderate resistance at 1.0340. Look for shorts from the said price. Buys may initially be taken on a close above 1.0288.