Asia Closing: Back to square one after Monday blues.

USD/JPY H1

Prices rallied back up around 4th/5th October lows but appears to be unable to push any further – a potential 1-2-3 setup. Bears will want to look for a break below Yesterday’s Low for further downside targets.

AUD/USD H1

Similar to USD/JPY, recent rally appears to be stalled just around 4th/5th Oct lows. This development will weigh on bulls especially with longer term direction heading downwards. Yesterday’s low and Today’s L3-l4 may provide significant intraday support as it coincides with the consolidation range early Monday.

NZD/USD H1

Bears flatter to deceive with Monday’s low not leading to fresh downside but instead bulls quickly took over. Nonetheless, current price levels is still within trading range found on 3rd Oct and also lower than H4/ Yesterday’s High and 5th Oct swing high. With longer term trend heading downwards, momentum still remain on the bearish side.

Hang Seng Index Futures M15

Back to square one. Recent price movement failed to produce any new directions other than introduce fresh volatility into the charts. Nonetheless, one could arguably make a case for bearishness in price action with HSI giving up most of its gains today and we’re once again looking at price trading below the upward trendline and Yesterday’s High.

Nikkei 225 Futures H1

Nikkei continue to trade lower as price broke below yesterday’s low after failing to push above H3. On hindsight, today’s H3 would have been a tough nut to crack as it is the confluence with the bottom of consolidation zone found last week around 4th October. A break below L5 today will accelerate price back to the downward trendline.

Bottomline:

Unlike their European counterparts, Asian currencies and equities (with the exception of Nikkei 225) are still relatively supported with the recent “Breakout” proving to be false. That does not mean that we’re back in a bull trend as momentum is still favoring downside. Furthermore, this support that we’re seeing right now may be gone quickly should Europe and US sentiment turn fearful after lack of action from Euro Zone meetings.

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