by Chris Becker
Asia markets remain in caution mode going into this weeks Fed meeting with no real movement to report on stocks, as currencies continue to weaken in the face of a stronger USD. It will be a Euro focus this evening with news of a possible Scottish referendum and further complications with Brexit and reaction to the latest German ZEW sentiment survey.
The Shanghai Composite is treading water on the other side of the long lunch break, down a couple points as it heads into the close, now at 3235 points and still above local support at 3200 level. The Hang Seng Index is in a similar boat, going nowhere and stuck at 23832 only just below the 24000 points resistance level as it bounces above the daily ATR support level. Note how daily momentum has remained positive in this little dip so I’m watching for a follow through above the high moving average:
Japanese stock traders are also putting in scratch sessions even as Yen weakens ever so slightly against USD. The Nikkei closed down 14 points to 19,614 points. The four hourly chart of the USDJPY pair shows a small buildup in price but there’s hesistation to cross above the high moving average and the 115 handle proper here:
S&P futures are slowly building, now above their closing Friday price:
The ASX200 also puts in a scratch session! Absolutely no movement with the big gap up on the open erased by the close, stuck at 5759 points, still shy of key resistance at 5800 points. Swings and roundabouts as energy stocks rallied but financials and industrials pulled them back.
The Aussie dollar is slowly building above ATR support on the four hourly chart, but just barely hanging in there at the 75.60 level against USD. Momentum is dead flat so I’m positioning for a possible breakout either way here either above the high moving average at 75.70 or ATR support:
The data calendar continues with the all important German ZEW survey tonight that will be closely watched by Euro traders.