See the latest Australian dollar analysis here:
by Chris Becker
Stocks are retreating across the region in the wake of the sharp reversal on Wall Street overnight, not quite taking back Monday’s gains, but more importantly putting a lot of fear into a massively correlated market that is stretched too thin. Gold is just hanging on above the $1800USD per ounce level as while Euro is largely unchanged going into tonight’s ZEW survey and US inflation data for June.
In mainland China, the Shanghai Composite is down nearly 1.5% to 3394 points while in occupied Hong Kong the Hang Seng Index is down 1.5% to 25372 points. The daily chart shows price now retracing all of last week’s breakout with momentum readings swinging to a swing short position as support at 25000 points comes under pressure:
Japanese stocks stumbled after having a good Monday, with the Nikkei 225 down 0.9% to close at 22587 points. The USDJPY pair is unchanged after its swing higher overnight, still remaining just slightly above the 107 handle yet still stuck below former trailing ATR support and the 107 handle at its recent weekly lows going into the City open:
The ASX200 fell at the open and stayed there, moving in lockstep with Wall Street to close 0.6% lower to 5941 points. A similar pattern in the Australian dollar which remains depressed here below the mid 69 level and holding on to key support at the 69 handle proper as momentum goes negative:
Eurostoxx and S&P futures are down over 1% with the four hourly chart of the S&P500 looking very confused, slammed back down to the previous mid range but not able to break support at 3100 points. Watch TSLA tonight and the NASDAQ in general, this is getting very toppy and I can feel something in the air – a Type X error maybe? 😀