The forex markets are engaging in sideway trading in very tight range in Asian session. Dollar and Yen remain the weaker ones for the week. But so far, there is not following selling to push them through near term support level yet. Overall risk sentiment is crucial in determining the next move. While US stocks staged a strong rebound overnight, Asian markets are just mixed, with softness seen in Hong Kong and China. The lack of committed risk buying also drags down Aussie and Kiwi a little bit. Technically, firstly, focus will stay on some near term levels in Dollar pairs, including 1.0641 resistance in EUR/USD, 1.2637 resistance in GBP/USD and 0.9871 support in USD/CHF. Firm break of these level will confirm short term topping in the greenback, and turn it into a "longer-lasting" near term correction phase. At the same time, attention will also be on some sterling pairs, including 0.8365 support in EUR/GBP and 162.16 resistance in GBP/JPY. Break of these two levels (in reaction to CPI data?) will push the Pound for a stronger near term rebound at least. In Asia, at the time of writing, Nikkei is up 0.66%. Hong Kong HSI is down -0.32%. China Shanghai SSE is down -0.21%. Singapore Strait Times is up 0.89%. Japan 10-year JGB yield is up 0.0031 at 0.248. Overnight, DOW rose 1.34%. S&P 500 rose 2.02%. NASDAQ rose 2.76%. 10-year yield rose 0.091 to 2.968. |
