Resistance: 1.5593 moderate / 1.5625 moderate / 1.5653 moderate
Support: 1.5563 moderate / 1.5534 moderate / 1.5500 psychological
Thursday saw Cable breaking lower pushing through the weeks congestion lows and closing low enough thathe breakout remain valid triggering a mean reversion play. Daily indicators has stochastic in oversold areas while macd is also seeing a new bear cross. From the lower time frames we are seeing indecision signals as 4H stochastic comes off oversold areas while macd has just pushed under the zero-line. Hourly charts in-turn has a new bear cross in stochastic while macd is heading up for the zeroline. Given the bearish breakout and daily signals we prefer focusing on getting a bear market going. Consider shorts coming off the resistances at 1.5526 or on a close below 1.5563 our objective to finish mean reversion getting to the 21DEMA at 1.5500.
Resistance: 99.06 moderate / 99.27 moderate / 99.56 minor
Support: 98.77 minor / 98.51 moderate / 98.10 minor
At the close we have USDJPY around its highs as we triggered a daily scale inverted head and shoulder and saw an equity market rebound. From indicators we have stochastic entering overbought levels while macd is also heading up looking to push through the zero line. Intraday we have stochastic crawling in overbought areas while macd is also heading up in he 4H picture. We also find stochastic oscillating around 80 at the hourly level with a new bullish crossover from macd. Note while we have a strong start from Asian equities the risk for today will be on the QE taper which could quickly change markets tone. We will be seeing the start of the Jackson hole summit venue for the announce of previous QE actions. Any hint or detail of slowing down or shutting the printing press could quickly see a stock market sell-off and increase USDJPY volatily.
Resistance: 0.9046 moderate / 0.9081 moderate / 0.9098 minor
Support: 0.8996 moderate / 0.8942(50) moderate / 0.8906 minor
Aussy saw a bounce Thursday as Chinese manufacturing figure saw a recovery the HSBC Flash Manufacturing Index bouncing to 50.1 against consensus expectation of another contraction at 48.3. Daily indicators has a new bear cross in macd while stochastic is in oversold areas we see yesterdays knee-jerk response to data as allowing bears to pair down their shorts from earlier in he week. From the 4H picture we have a mixed view with stochastic crossing lower while macd’s is seeing a new bullish cross this as candlesticks are indecisive. Hourly charts for their part has a confluence of bears with both stochastic and macd seeing new bearish crossovers. At the moment we also see a double top in the hourly picture. Considering the scenario of reduce QE from he US risk going forward fill before a bear, the preferred course of action shorting on a close below the 0.8996 pivot. Alternative entry will be coming off 0.9046, the 38.2 Fib retracement level. for the weeks drop.