Asian Session Notes: 11/08/12

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By mdelapaz | November 8, 2012 1:21 PM EST

Fx Instructor

EURUSD

Resistance: 1.2783 minor / 1.2827 minor / 1.2875 moderate

Support: 1.2754 strong / 1.2736 minor / 1.2697 minor

After huge swings we have EURUSD ending Wednesday just around the key support level of 1.2754 a previous breakout point and 200D SMA. Among indicators we now have daily EMA lines with dead crosses while stochastic remains oversold and macd continues to drop. We are looking for further weakness following through with the symmetric triangle breakout. From the 4H picture we have stochastic oversold while macd has crossed lower. Hourly charts for their part has stochastic pushing for oversold levels while macd is flat below the signal line. For now we prefer looking for a push through the key support and yesterdays lows before jumping short under 1.2736. Fail to break lower by the time European markets open and we risk a technical bounce off 1.2754.

GBPUSD

Resistance: 1.5994 minor / 1.6039 minor / 1.6065 moderate

Support: 1.5959 minor / 1.5914 moderate / 1.5896 minor

Cable closed with long wick in Wednesday’s trade with earlier rally’s on action from the crosses failing to stick getting rejection from the daily EMA lines while stochastic is now oversold in the daily charts and macd is dropping. Prices for the moment are just above the 38.2 Fib level of our rally from August. Intraday we have mixed signals fro the 4H picture with macd heading lower and stochastic flat above the signal line. Hourly charts for their part has a confluence of bears. Given the lack of conviction we prefer looking for range games consider buys off 1.5959 and shorts from under 1.6039.

EURAUD

Resistance: 1.2252 moderate / 1.2287 minor / 1.2318 minor

Support: 1.2209(17) moderate / 1.2160 minor / 1.2132 minor

EURAUD continues its bearish tone with daily indicators seeing an oversold stochastic while macd has been bearish for a month. Note we also have dead crosses now forming among the EMA lines while price charts themselves has been a series of black candles since midweek last week. These after a descending triangle breakout from October 24. From the 4H picture we have macd’s flat while stochastic appears poised to cross lower. Hourly charts for their part has a confluence of bears in the making. Overall indicators suggest we keep a bearish bias for the pair look for shorts from just under 1.2252. A daily close under 1.2217 should pave the way for a move down to 1.2075, the 61.8 Fib of the rally from August.

AUDUSD

Resistance: 1.04444 moderate / 1.0480 minor / 1.0522 moderate

Support: 1.0411 strong / 1.0388 minor / 1.0357 minor

Aussy Wednesday saw a long wick for the daily candles and closed below the key support level of 1.0411, though the latter move down was more due to near end of day releases from New Zealand. At the moment we have prices back up above the key 1.0411 area while daily indicators has stochastic still heading up while macd is also bullish. In the lower time frames 4H indicators are mixed with stochastic coming off oversold areas while macd has crossed lower. Hourly charts for their part has stochastic heading for overbought levels as macds are now poised to cross higher. Given this we prefer looking for a buy on dips to the key support level at 1.0411.

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