(Ranges are calculated using recent highs and lows, information on the placement of option strikes, and technical analysis--Bollinger Bands, Fibonacci levels, trendlines and moving averages.)
USD/CNH Intraday: further upside. Yesterday China's central bank fixed the official midpoint at 6.1195 yuan per dollar vs Wednesday's 6.1137 yuan, triggering a selloff in the market and causing the currency to drop to a 5-month low. Meanwhile USD/CNH has broken above the previous high at 6.2050 (made on Dec. 9) and remains on the upside challenging the immediate resistance at 6.2250. The upward momentum is supported by the rising 20-period and 50-period moving averages. Also the RSI remain above the neutrality level of 50 lacking downward momentum. We therefore suggest long positions above 6.205 with an extended target at 6.235. Below 6.205 look for further downside with 6.185 and 6.17 as targets.
USD/TWD Intraday: the upside prevails. The pair remains bullish as Taiwan's central bank kept its benchmark interest rate unchanged at 1.875% as expected while the U.S. Federal Reserve signaled that it is on track to raise interest rates in 2015. The pair has broken the upper boundary of a bullish channel (started in early December) and remains on the upside. Meanwhile the RSI has crossed above the 80 level but shows no divergence, indicating that there is still further upside for USD/TWD. We suggest long positions above 31.26 with targets at 31.57 and 31.65 in extension. Below 31.26 look for further downside with 31.17 and 31.09 as targets.
USD/KRW Intraday: rebound. USD/KRW continues its rebound after violating the key resistance at 1097 and generating a bullish price gap. The 20-period moving average has crossed above the 50-period one, confirming the continuous bullishness. Further, the RSI stays firmly above its neutrality level at 50 lacking downward momentum. We therefore suggest long positions above 1093 with targets at 1110.9 and 1115 in extension. Below 1093 look for further downside with 1080 and 1070 as targets.
USD/SGD Intraday: bullish bias above 1.3085. From a technical view, the pair remains in consolidation after the recent rebound, but stands firmly above its intraday support at 1.3085. The technical indicators are still bullish, as the 20 and 50 simple moving averages remain positive, and the intraday RSI lacks downward momentum. In these perspectives, we suggest long positions above 1.3085 with targets at 1.3175 and 1.324 in extension. As an alternative scenario, below 1.3085 look for further downside with 1.305 and 1.3 as targets.
USD/MYR intraday: the RSI is oversold. Graphically, the pair extended its losses during the latest trading hours. The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the pair is trading under both its 20 and 50 MAs (respectively at 3.4868 and 3.4865). Finally, the USD/MYR is trading below its lower Bollinger band (standing at 3.466). To sum up, we lowered our intraday stop-loss to 3.478 from 3.496 previously. As long as this threshold holds on the upside, suggest the downside prevails.
USD/THB intraday: turning down. From a chartist point of view, the pair broke below its support at 32.932 yesterday, which confirmed a bearish reversal. Furthermore, the pair is trading under both its 20 and 50 MAs (respectively at 32.9163 and 32.9333), and a bearish cross has been identified between these two MAs, suggesting a negative configuration. Last but not least, the RSI is below 50, while the MACD is below its signal line and negative. To conclude, we suggest the downside prevails with targets at 32.807 and 32.771, as long as 32.916 is resistance. Alternatively, above 32.916, look for 32.943 and 32.962 in extension.
USD/PHP intraday: the bias remains positive. The pair stands above its key support at 44.696, and posted some rebounds. The RSI lacks downward momentum and still stays above 50. The MACD is positive but has crossed below its signal line, which gives a mixed information, nevertheless, as the pair remains above its 20 and 50 MAs (respectively at 44.6931 and 44.6442), we keep our intraday positive view unchanged, and look for a new rebound to 44.842, as long as 44.696 is support. Alternatively, below 44.696, expect 44.66 and 44.638.
USD/IDR intraday: target 12504. The pair has broken down its previous support and now remains under pressure below its resistance. The RSI has just crossed below 50 and is negatively oriented, calling for further decline. Besides, the MACD is below its signal line, and must penetrate its zero line to expect further downside. Finally, the pair is below its 20 MA (12635). In which case, as long as 12619 holds as a resistance, we target 12504 on the downside. Only an upside breakout of 12619 would call for 12647 and 12664 in extension.
USD/INR Intraday: consolidation, then rise. The pair continues to consolidate and is filling the previous gap created on Dec. 16. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as the lower boundary of the gap at 62.96 is not broken, we favor long positions with targets at 63.38 and 63.62 in extension. Alternatively, a break below 62.96 would look for further downside with 62.5 and 62.2 as targets.
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(END) Dow Jones Newswires
December 18, 2014 21:50 ET (02:50 GMT)
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0 Response to "USD/Asia Remain Firm to End The Week"
Thanks for give comment.