Asia Closing: Asia markets recover after early setbacks

USD/JPY H1

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Asia Session created yet another weekly high. Bulls have been rampant without any sign of abating. Yesterday’s high during US Session could potentially act as support for upward movement. Failing which, the upward trendline may act as temporary soft support. A break below minor intraday consolidation range around 78.4 – 78.5 may bring out more confidence from bears.

AUD/USD H1

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AUD/USD was reasonably supported during yesterday’s Europe/US session which 1.02 was acting as a strong support. Price threatened to break further this morning during Asian session but bulls quickly took over. Currently, today’s H3 will act as resistance.

NZD/USD H1

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Yesterday we mentioned NZD/USD breakout could be stronger than AUD/USD’s, and that was affirmed by continued selling during Europe and US session unlike AUD/USD which was better supported. Today feels the same with Kiwi’s bulls kept below H3 of 0.822 which is also lower than the highs of yesterday’s US session.

Hang Seng Index Futures M15

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Prices managed to stay afloat of the upward trendline that was drawn previously, and price could potentially close above Yesterday’s close. However, Yesterday’s High may be a bridge too far for the bulls to cross. Most likely we may end the day without any significant advancement, but still maintaining the bullish bias/momentum.

Nikkei 225 Futures H1

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Japanese Car makers are largest winners in today’s Nikkei rally, possibly due to weakening Yen that is helping their exports. However, bulls hit a snag at H5 which is also the week’s high found on 1st October. If price falls below H3 / Yesterday’s High overnight, this will put bears back into control.

Bottomline:

Early Asian hours saw Asian currencies/equities weakening but prices managed to bounce back around Asian close. If ECB rate announcement that is coming in a few hours time proves to be bullish, we could see currencies and futures continue their uptrend into Europe/US session.

 

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