Asian Session Notes: 12/04/13

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By mdelapaz | December 4, 2013 12:49 PM EST

Fx Instructor

Gold

Resistance: 1225.74 moderate / 1230.41 moderate / 1237.30 moderate

Support: 1219.85 minor / 1215.29 moderate / 1207.46 moderate

Gold saw a tight range Tuesday after the big sell-off at the start of the week. Daily indicators show stochastic pushing itno oversold levels while macd’s are just under their signal line heading lower beneath zero. Note we have been in a bear market in gold for some time with lower highs and lower from daily charts and consistently bearish daily EMA’s. In intraday charts we have indecision candles all over while indicators call for a technical correction with stochastic heading up in the 4H picture and macd’s bottoming out. Hourly charts for their party has a confluence of buys with stochastic heading for overbought levels and macd’s pointing up. With intraday charts showing buy signals we are hoping for a bounce to the previous congestion floor at 1237.30 and take the sell side from the said prices.

Cable

Resistance: 1.3690 moderate / 1.6436 moderate / 1.6473 moderate

Support: 1.6377 minor / 1.6345 moderate / 1.6308 strong

After attempts at pushing for the swing highs in European trade we have Cable with another long wick pushing all the way up though failing to see 1.6441 for a lower high. From indicators we are seeing stochastic come-off overbought levels while macd is pushing up in the daily picture. We appear to have opened the risk of mean reversion the trigger at 1.6345. At the momnet we have prices just under the daily pivot while 4H charts show a double top in the making with 1.6345 as the trigger. Indicators has macd’s heading lower while stochastic also see a new bear cross. In the hourly scale we have macd’s heading lower poised to push under the zero line while stochastic has just come off oversold areas in indecisive markets. Immediate risk calls for completing the double pattern a break of 1.6377 could be an excuse to get to the trigger though any sell-off would have to contend with a string support at 1.6308.

AUDUSD

Resistance: 0.9146 moderate / 0.9167 moderate / 0.9204 moderate

Support: 0.9113 moderate / 0.9080 moderate / 0.9056 moderate

Aussy ended the day just under Tuesday highs as initial attempts at a sell-off failed when the RBA backed-off the idea of active currency intervention. At the close we still remained inside the weeks ranges though indicators now shows a confluence of buys with stochastic heading up and macd’s bottoming out. Note the daily EMA line appears to be chasing prices down as we consolidate. For now we have prices between the daily pivot 0.9113 and R1 0.9167. Intraday we are seeing mixed signals with stochastic pushing overbought in the 4H picture while macd is also heading up. Hourly charts for their part has a confluence of bears with a new cross down in macd and stochastic heading lower. Given Australain GDP numbers at 0030GMT we prefer remaining sidelined though a poor read would be a nice excuse to retest the congestion floor at 0.9056. Consider a straddle with the release.

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