by Chris Becker
Another sea of red screens across Asia in direct response to the selloff in overnight markets with bond markets also dropping as funds go into non-USD currencies. Commodities were the bright note with some modest rises, but its all eyes on the Euro tonight with the one-two punch of German unemployment and European inflation prints.
In mainland China the Shanghai Composite barely closed a few points higher to 3190 points, trying to build once more above local resistance at the 3150 point level. The Hong Kong based Hang Seng Index is not doing so good however, down 0.7% to 25761 points, still hovering above ATR support but unable to get above the 26000 resistance level again:
Japanese stocks did poorly on the rising Yen with the Nikkei 225 closing nearly 1% lower to significantly close the week out at lower than 20,000 points, which was key previous resistance, and may prove a key false break level.The USDJPY pair is slowing melting down to the 112 handle and to trailing ATR support on the four hourly chart as safe haven buyers step in:
S&P futures are steady, but this price pattern looks ominous with negative momentum:
The ASX200 is providing amazing opportunities for intraday traders but no one else at the moment, losing over 1.5% today to close at 5721 points. The 200 day moving average this time is proving more sticky than thought, dragging the bulls back to reality.
The Aussie dollar was soaring but has been unable to breach above the March high at 77.20 and is starting its expected retracement. I expect the 76.50 level to come under stress here soon before another potential leg up again:
The data calendar concludes with some big ones for Euro traders, namely EZ wide CPI and German unemployment, plus an oil rig count in the ‘States.