Asian Session Notes 10/31/12

GBPUSD

Resistance: 1.6086 minor / 1.6111 minor / 1.6141 minor

Support: 1.6065 minor / 1.6038 minor / 1.6005 minor

Tuesday saw Cable with a bounce off the 55D EMA with daily indicators showing a mixed view stochastic coming off overbought levels while macd is flat. Note we risk violating the lower highs and lower lows pattern for the daily charts. In the lower time frames we have stochastic overbought while macd is flat after attempting to cross higher in 4H charts, the candlestick themselves appear indecisive. Hourly charts for their part has a bearish divergence out of stochastic while macd’s are just crossing lower. Immediate risk calls for a close under 1.6065 for a resumption of our daily pattern of lower highs and lower lows.

AUDUSD

Resistance: 1.0386 minor / 1.0410 moderate / 1.0439 minor

Support: 1.0359 minor / 1.0326 minor / 1.0304 moderate

Tuesday saw the Aussy closing sa a white candlestick while earlier release turned out to be Aussy positive as Building Approvals came out strongly. Daily indicators has stochastic in the process of crossing up while macd is also heading higher. Note we have been surprise of late on the strength of Australian macroeconomic data. In the lower timeframes we have mixed signals with 4H stochastic coming off overbought areas while macd is rising. Hourly charts for their part has a confluence of buys with macd just crossing up while stochastic is also heading higher. For now we need a close above 1.0386 to pull the trigger on a new buy though dips to 1.0359 may also be seen as an alternative bullish entry.

EURUSD

Resistance: 1.2983 minor / 1.3013 moderate / 1.3041 minor

Support: 1.2956 minor / 1.2923 minor / 1.2886 moderate

At the close Euro saw a big white candlestick though stayed under the 21D EMA to suggest that we remain in a ranging market. Among indicators we have mixed signals with the daily macd heading lower whole stochastic is pushing up. In the lower time frames we are seeing mixed signals with 4H stochastic just coming off overbought areas while macd is bullish, the candlesticks for their part could be qualified as a dark cloud cover. Hourly charts for their part has mixed signals with macd heading lower and stochastic pointing up. Note we appear to have a possible straddle with a close under 1.2956 seen as a bearish entry while a push above 1.2983 will be a buy signal.