Asian Currencies Technicals

Aussie closed on a heavy note marginally above last week’s low’s with immediate bearish focus on the $0.9307 initially support. The 21-DMA is just below and a close below would further confirm bearish pressure and see bears targeting the $0.9207 Apr 3 low. Bulls need a close above the $0.9395 resistance level to ease the current bearish pressure while a close above $0.9425 is needed to kick start bullish momentum and target fresh 2014 highs.

RES 4: $0.9549 – Monthly high Nov 6 2013

RES 3: $0.9461 – 2014 high Apr 10

RES 2: $0.9425 – High Apr 11

RES 1: $0.9395 – Hourly resistance Apr 15

LPRICE: $0.9333

SUP 1: $0.9307 – High Apr 4 now support

SUP 2: $0.9288 – 21-DMA

SUP 3: $0.9255 – Low Apr 7

SUP 4: $0.9207 – Low Apr 3

NZD/USD continued its pullback from fresh 2014 highs last week and managed to close the week on a relatively bearish note. The close below the 21-DMA adds weight to the bearish case with bears now initially focused on a retest of the $0.8504 Mar 20 low and then the $0.8441-51 region below. Bulls need a close above $0.8648 to confirm a false break of the 21-DMA and above $0.8694 to target 2014 highs one more

Layers of support are noted in the NZ$1.0740-1.0814 region with bears looking for a close below NZ$1.0740 to end bullish aspirations and shift overall focus back to 2014 lows. While the NZ$1.0814 level supports bullish pressure continues to dominate with bulls targeting the NZ$1.0908-47 region and then the 200-DMA (NZ$1.1087). The only negative for a bullish continuation are the very overbought daily tech studies looking to correct lower.

AUD/JPY bounced from ahead of the Y94.81 support last week although the bounces remained capped ahead of the Y96.02-49 region. The bounces eased the bearish focus but bulls still need a close above Y96.49 to confirm they are back in control and see focus shift to tests of the Y99.00-05 region. Bears now need a close below the key Y94.81 support to end bullish aspirations and target layers of support Y92.26-93.35

Attempts to take out the fresh 2014 low have so far failed with the EUR/AUD bouncing back towards the 200-DMA. Bulls look for a close above the A$1.4863 high from Apr 4 to confirm a break of the 200-DMA and shift immediate focus to the A$1.4959 Mar 27 high. Overall, bulls need to see a close above A$1.4959 to hint at a bigger correction whereas bears need to see fresh 2014 lows to reconfirm bearish momentum and target the A$1.4485 support.

USD/KRW ran out of steam on the approach to the previous 2013 low with the Krw1048.3-1050.6 resistance region seen as key for the pair. A close above Krw1050.6 sees bulls back in control and immediate focus shift to the Krw1059.5 Apr 3 high. While the Krw1048.3-1050.6 region caps bears will continue to initially target fresh 2014 lows and sub Krw1000.0 levels overall. Daily studies remain O/S and may slow moves lower for now.

The Sgd1.2547-68 region remains key for the pair this week. Bulls need a close above Sgd1.2568 to confirm bullish focus dominates and see the pair targeting key moving averages in the Sgd1.2611-46 region and then the Sgd1.2650 Apr 4 high. Bears need the Sgd1.2547-68 region to cap attempts higher to retain overall focus on fresh 2014 lows. Daily studies are correcting from oversold which add support to the bullish case.