Asian Session Notes 10/3/13 AUDUSD Resistance: 0.9375 minor / 0.9392 minor / 0.9410 minor Support: 0.9342 moderate / 0.9333 minor/ 0.9312 moderate After an earlier sell-off Aussy managed to build a base off the 0.9338 area for a bounce in New York to close with along tail in daily candles. This reinforces the notion of bouncing off the 21D EMA though indicators remain mixed as we have yet to see macd’s turn up though daily stochastic is bullish. Given that we came off a bounce from the 38.2 Fib retracement of the September rally the long tail should underscore the presence of bulls. From the 4h picture we have yet to see macd’s crossing up though we are poised to do so while stochastic is looking to push through the 80 level, we risk forming an evening star at the close. Hourly charts for their part are mixed with stochastic heading down while macd is above the signal line. Look for buys off S1 at 0.9342 or on a close above 0.9375. EURJPY Resistance: 132.50 minor / 132.77 moderate / 133.05 minor Support: 132.09 moderate / 131.61 moderate / 131.41 minor In the end EURJPY bounced off its European morning trade congestion floor to close with along tailfor the daily charts, a possible bullish reversal hammer. That said we are still within the daily EMA’s with little catalyst for risk taking. From indicators we have daily stochastic poised to cross lower while macd is heading for the zero line. In the lower time frames we are seeing buy signals despite the lack of momentum from price action, 4H stochastic is looking to push overbought while macd has anew bullish cross. In the hourly charts we are seeing a similarly bullish setup with stochastic heading up and macd looking to push through the zero line. For now we prefer remaining sidelined waiting for a close under 132.09 to signal a resumption of the risk averse tone from the broader market. EURUSD Resistance: 1.3606 minor / 1.3629 moderate / 1.3669 minor Support: 1.3567 moderate / 1.3539 minor / 1.3512 moderate Wednesday saw Euro pushing through two week long congestion resistances to close with a bullish breakout suggesting we make run for the previous swing highs at 1.3710. Daily indicators has stochastic looking up while macd’s see a new bullish crossover. Note given our congestion the past two weeks daily EMA’s have caught up with prices reducing the risk of mean reversion. Intraday we have a confluence of buys with stochastic pushing overbought and macd’s up in the 4H picture. Hourly charts for their part has macd’s with a bearish crossover and stochastic heading up. Given the flag in our hourly charts we prefer looking for an eventual bullish break out. XAUUSD Resistance: 1321.50 moderate / 1333.10 moderate / 1337.62 minor Support: 1312.38 minor / 1305.55 moderate / 1293.45 minor Gold rallied as markets reasses the US government shutdown and the private sector reports its work disruptions. Daily indicators now has a mixed view as stochastic is in the process of crossing higher while macd is bearish. Note we appear to have kept the pattern of lower highs and lower lows from September. In the lower time frames we are seeing more mixed signals as stochastic comes off overbought areas and macd show a bullish crossover. Hourly charts for their part has stochastic looking to push oversold while macd has a new bear cross in the making. Immeidate riskfor gold is to test the daily pivot at 1305.55. We look forward to seeing price action suggest we are ready to bounce off these levels. Source: mdelapaz / fxinstructor
Posted on: Thu, 03 Oct 2013 04:29:34 +0000
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