Asia Closing: AUD/USD fail to latch onto 1.04, USD/JPY trades below 80.0

USD/JPY H1

Price facing resistance around 29th Oct peak and 25th Oct low, falling back below H4 and Yesterday’s High, breaking back below 80.0 in the process. Support could be seen around H3 which is the top end of the consolidation zone found on 24th Oct, with a break below bringing back price towards 79.75 which has been acting as a pivotal level for price action for the past week.

AUD/USD H1

Failure to break above 1.04 resulted in Aussie falling back, but Aussie still managed to find some support around today’s L3 level. Price is still threatening to push lower with Yesterday’s low of 1.0352 and today’s L4 at risk of breaking, opening up L5 which is around 29th Oct low as the next level of support.

NZD/USD H1

Trading mostly flat, with the daily range getting tighter and tighter. One could even argue that the current range for NZD/USD is between 0.8212 – 0.8227 (today’s L3 and yesterday’s high). With the decreasing range, the likelihood of a stronger eventual breakout increases. If one is to ignore the “noise” above 0.823, we could potentially draw an upward triangle where price is perilously squeezing into the apex, adding to the case of an eventual breakout either direction.

Hang Seng Index Futures M15

HSI futures pushed higher to hit the previous 2012 high just posted last week. Price close 1 point lower than the high at 21853. This may be another watershed moment for HSI, spelling out the direction which HSI may take for the rest of November.

Nikkei 225 Futures H1

Price recovered from early morning losses to hit 9,000 briefly before going back down again.  Currently trading in the middle of H3/H4 level with strong support/resistance either side.

Bottomline:

Something to cheer for the equities bulls as price shrugged off negativity from US trading session to trade higher than yesterday’s close. Currencies mostly flat with the exception of USD/JPY which rallied on the back of positive risk sentiment. What is of concern is the fact that neither Aussie nor Kiwi forged significant rallies while equities pushed higher, suggesting inherent weakness in the 2 currencies as they trade against the flow of the market. 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.