Asian Session Notes 2/01/2013

USDCHF

Resistance: 0.9095 moderate / 0.9122 moderate / 0.9160 minor

Support: 0.9058 strong / 0.9025 minor / 0.8998 moderate

After the sharp sell-off Wednesday we had tight range in USDCHF yesterday with attempts to ease further seeing limited success. Note we are now just above the key support level of 0.9058 our floor since December while we also see a huge gap between prices and the EMA lines. The smaller range may also be seen as a sign of lost momentum though daily indicators continue to be bearish. In the lower time frames we have 4H macd bottoming out while stochastic is poised to cross up and form a bullish divergence even as candlesticks see a hammer and spinning tops. Hourly charts for their are mixed with stochastic heading lower and macd up. Given the strong support and lost bearish momentum a push back above the daily central pivot at 0.9095 can be seen as entry for the 0.9157 area, our projected high. We are looking at a strong NFP figure later on to push the dollar higher.

GBPUSD

Resistance: 1.5890 moderate / 1.5918 minor / 1.5952 minor

Support: 1.5847 minor / 1.5824 minor / 1.5767 moderate

Cable rallied further Thursday with prices pushing back above the weekly double top breakout point, 1.5824, als the 23.6 Fib of the sell-off from January 02. For the moment we have prices just under the previous weeks highs and the 21D EMA at 1.5890. Among indicators we have macd crossing up while stochastic has pushed to overbought levels. In the lower time frames we have 4H stochastic oscillating around 80 with a bullish macd while price action us loosing momentum. Hourly indicators has a confluence of buys with stochastic overbought though macd is topping off and price action has formed a double top. For now we prefer waiting for near the European open looking for shorts from just under 1.5890. Alternatively a close below 1.5847 in the hourly charts can be seen as a bearish entry.