Asia Closing: NZD/USD and Hang Seng Index winners amidst mixed Asian Session.

USD/JPY H1

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Channel Top that has been established since early September acting as a support for the downward movement for much of today and yesterday. Prices tried to break back into Channel area but has been subsequently push back, with H3/H4 region potentially acting as a resistance area. It is interesting to note that USD/JPY which is generally a safe haven currency is rallying during European opening hours when European risk sentiment seems to be off with equities trading lower.

AUD/USD H1

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It was one way street for AUD/USD yesterday but price has hit a snag around H3 level during Asian hours today. However, as long as price remain higher than the 25th Sep high (and Yesterday’s High of 1.04575, bulls may want to see price higher during US trading hours.

NZD/USD H1

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Much more bullish compared to AUD/USD, Kiwi has break above the 25th Sep swing high and has also made higher highs during Asian hours today. Certainly yet another high during US hours could be in the making, but this chart is more informative in telling us how AUD/USD could perform should it break its 25th Sep high.

Nikkei 225 H1

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Yet another bearish day for the Japanese benchmark index. We’ve erased the gains from yesterday’s optimism brought about by Spain’s budget plan. Currently price trading between L3/L4 consolidation zone and potentially forming yet another inside day today.

Hang Seng Index M15

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Also yet another inside day seen in HSI as price was not able to trade above Thursday’s High. Price consolidating between Monday’s High and Thursday’s High. Price is currently testing the post QE3 highs of 20,900 which demonstrate strong bullish intent. However, price may also reverse quickly back to 20,500 region should optimism about China fades.

Bottomline:

NZD/USD and HSI showing bullish potential. However with global economy still relatively bearish (as evident in Europe equities), the rallies is these 2 assets may not be fundamentally supported.

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