Asian Session Notes 1/06/14

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By mdelapaz | January 6, 2014 3:21 PM EST

Fx Instructor

EURUSD

Resistance: 1.3619(23) moderate / 1.3659 moderate / 1.3717 moderate

Support: 1.2582 minor / 1.3555 moderate / 1.3527 moderate

Euro saw a double top triggered in the daily charts Friday, pushing through EMA lines and closing under the 55D EMA to form the second top of a weekly scale double top pattern. This may be seen as a follow through to the rejection off 1.3832, 61.8 Fib retracement level of the Sell-off from 2011 highs. Indicators has daily stochastic pushing into oversold areas while macd is also dropping. Intraday we are seeing mixed signals for now following the weekend break with prices just under the daily central pivot. We have 4H stochastic in oversold areas while macd is dropping. Hourly charts for theirpart has stochastic coming off oversold levels heading up and macd with a bullish crossover. We prefer looking for better pricing with shorts off 1.3623, pattern trigger and roughly 55D EMA. Alternative entry will be a break of the 1.3582 area, Fridays lows.

USDCHF

Resistance: 0.9059 minor / 0.9094 moderate / 0.9125 moderate

Support: 0.9027(33) moderate / 0.8988 moderate / 0.8967 minor

The swiss franc saw a strong close last week with a weekly scale bullish engulfing off its bounce from the 38.2 Fib retracement level of the rally from August 2011. The move has seen us triggering a daily double bottom with prices now above the daily EMA’s with the close near its highs, well above the 55D EMA. With the break we now have stochastic pushing into overbought areas and macd poised to push up through the zero line as well. Intraday we have 4H stochastic oscillating around the overbought threshold while macd is rising to underscore a bullish trend. Hourly charts for their part has stochastic with a bearish divergence and macd a bear cross as well. We do not see a sense of urgency, this being the case we prefer looking for a buy on dips to the 0.9027(33) area possibly 55D EMA at 0.9017 though a push past 0.9059 will also be seen as a bullish entry.

XAUUSD

Resistance: 1241.54 minor / 1247.96 minor / 1253.63 moderate

Support: 1232.80 moderate / 1226.80 minor / 1219.23 moderate

Gold saw a strong from last week as we bounce following its worst year since 1981. At the open of the new year we triggered a double bottom coming off the 1180 lows and possibly forming a second bottom in the weekly charts given the long tails. From indicators we have stochastic pushing further into overbought areas as macd’s also head up for the zero line. In the lower time frames we have 4h stochastic reentering overbought areas to signal a bullish trend as macd’s for their part are already above zero and heading up. Hourly charts are mixed with stochastic crossing up and macd’s heading lower. Look for a push through Friday highs as a bullish entry or a bounce off the daily pivot. Our objective will be a run toward the 55DEMA.

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