Asia Close: Hang Seng Index rally after 2 days of holiday.

USD/JPY H1

Yen created another weekly high today, with price keeping above Yesterday’s high before Europe open. If price follow yesterday’s pattern, we could potentially see another high during the European session before dropping lower with yesterday’s high/today’s H3 acting as a significant support.

AUD/USD H1

AUD/USD broke yesterday’s low with worse than expected Trade balance data this morning. Currently price is straddling between dead-zone of L3 and L4. Upside will be faced with Yesterday’s low acting as intraday resistance while downward trendline may act as a soft support e.g. price could still potentially slide lower along the topside of the trendline.

NZD/USD H1

This morning’s break below 0.825 feels more significant than AUD/USD’s breakout, possibly due to the fact that Kiwi saw a bullish action yesterday before the sell off during US session, unlike AUD/USD which was going one-way yesterday. L4-L3 zone will act as significant resistance for bulls wishing to fight back, but bears may use any rally into the area as better prices to sell.

Hang Seng Index Futures

Hang Seng finally traded today after 2 days of holiday. Prices rallied immediately, against the run of play for other currencies/equities during Asian hour which was mostly flat/marginally lower. Prices did return a large portion of today’s gain but bulls have managed to gain ground today with prices advancing above 27th Highs and more importantly higher than last Friday’s closing levels.

Nikkei 225 Futures H1

Nikkei looks like it is bleeding out slowly with each swing high and swing lower heading lower. Prices could be potentially forming yet another swing high around 8,825 and then subsequently heading lower. An alternative perspective would be looking at Yesterday’s low and 30 Sep low as potential support, with agrees with today’s L3 level. Based on that, bulls will be comfortable as long as prices trade above current level with H3 and today’s swing high acting as resistance.

Bottomline:

Mixed session with HSI and Nikkei 225 showing opposite bias. Currencies showing the same mixed reaction with USD/JPY and Aussie + Kiwi displaying different directional bias.

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