Asian Session Notes 3/06/13

EURUSD

Resistance: 1.3074 moderate / 1.3101 minor / 1.3150 moderate

Support: 1.3042 moderate / 1.3000 psychological / 1.2966 moderate

Tuesday saw an indecision candle for EURUSD with a bullish spinning top following the hammer monday. Daily indicators has a bullish divergence out of stochastic while the macd is bottoming out. Note we appear to have Euro stabilizing around the psychological 1.3000 area though the gap between prices and the EMA lines suggests mean reversion risk persists. In the lower time frames we have 4H stochastic just crossing up inline with the bullish macd. Hourly stochastic for its part is poised to reenter overbought levels while macd is beginning top open up. For now we prefer remaining sidelined though a push past 1.3074 will signal furthering the mean reversion play for the 1.3140 area projected high.

EURNZD

Resistance: 1.5694(06) moderate / 1.5733 minor / 1.5776 moderate

Support: 1.5659 minor / 1.5594 minor / 1.5509 moderate

Tuesday saw EURNZD pushing under the 200D SMA following through its rejection from the daily EMA lines at the start of the week. Among indicators we have stochastic oversold while the macd line is opening lower. In the lower time frames we have stochastic pushing oversold in 4H charts with inverted hammers in candlesticks while macd is also dropping. Hourly charts also show a confluence of bears. At this point we have little catalyst for price action suggesting a slow drop though markets are technically bearish our immediate objective the previous swing lows at 1.5594 then on to the 1.5500(09) psychological area.

AUDUSD

Resistance: 1.0278(86) moderate / 1.0312 moderate / 1.0341 strong

Support: 1.0240 moderate / 1.0215 minor / 1.0185 moderate

Aussy is currently around the 21D EMA with aquick follow through thrust higher to yesterdays big white candle following as expected news, with the quarterly GDP at 0.6%. From indicators daily stochastic is looking to push overbought while macd has just crossed up. Intraday we have 4H stochastic trying to reenter overbought levels while macd is up. Hourly charts similarly has stochastic posied to move above 80 with macd opening up as well. With prices just under the 21D EMA and indicators near overbought immediate risk calls for a bullish breakout though we suggest buys only after we stabilize above 1.0278(86). Take too long to see a bullish push and we will look for shorts around the European open.