Asian Currencies Technicals

AUD/USD put in a double daily top Wednesday, just short of the 200-DMA, before correcting sharply lower. The sharp move lower eases the previous bullish pressure with bears looking for a close below the Mar 13 low to confirm a break of the 21-DMA with immediate focus shifting to the $0.8875-0.8928 region with the rising daily channel base ($0.8928) and 55-DMA located in this region. A close below then targets 2014 lows

RES 4: $0.9168 – Monthly high Dec 2

RES 3: $0.9148 – 200-DMA

RES 2: $0.9138 – High Mar 19

RES 1: $0.9050 – Hourly resistance Mar 19

LPRICE: $0.9038 @2100GMT

SUP 1: $0.9009 – 21-DMA

SUP 2: $0.8994 – Low Mar 13

SUP 3: $0.8939 – 55-DMA

SUP 4: $0.8902 – 21 day lower Bollinger band

After failing to make fresh 2014 highs on Wednesday the NZD/USD has corrected sharply lower, easing the previous bullish pressure and seeing the immediate focus shift to a retest of the $0.8495-0.8507 region. A close below the rising daily channel base hints at a deeper correction with bears initially targeted the 21-DMA and then the layers of support in the $0.8244-0.8345 region including 55 and 100-DMA’s.

Daily tech studies remain oversold and are the only negative for a sustained move lower with the move higher reversing from NZ$1.0619 on Tuesday and bears continuing to target 2014 lows. A close above the NZ$1.0642 high from last Wednesday remains needed to ease bearish pressure while a close above the 21-DMA and 55-DMA remain needed to end bearish aspirations and see focus shift to layers of resistance NZ$1.0858-1.0945.

The sharp bounce to start the new week saw the AUD/JPY break back above key moving averages with oscillation around the 100-DMA (Y92.47) continuing Wednesday. Tuesday’s low remains initial support with a close below needed to ease renewed bullish pressure that is targeting a retest of the Y93.43-59 region and a close above needed to shift focus to retests of the key Y94.46-59 region

Bears continue to target the A$1.5148 Mar 6 low and then the 100-DMA beneath while the A$1.5368 Mar 18 high caps. Bulls need a close above A$1.5368 to signal a false break lower and ease the renewed bearish pressure, while a close above the A$1.5537 Mar 12 high (last week’s high) is needed to shift overall focus back to retests of the 2014 high.

Consolidation above the 100-DMA has resulted in a break higher with immediate focus having shifted to the Krw1078.5 Feb 24 high. A close above this level confirms the bullish pressure and sees focus shift to a retest of the 2014 high. Initial support is now noted at Wednesday’s low with a close below needed to signal a false break and ease the bullish pressure. Bears need a close below Krw1063.6 to shift overall focus back to 2014 lows.

The break below the wedge base has been sharply reversed Wednesday with the move to fresh 2 month highs seeing bullish pressure firmly in place. Immediate focus now shifts to a retest of the Sgd1.2789-1.2830 region while the Sgd1.2700 level supports. A close below Sgd1.2700 is needed to ease the bullish pressure with bears looking for a close back below Sgd1.2675 to see focus shift lower to retests of the 200-DMA.