(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: bullish bias above 6.185. From a technical view, a support base at 6.185 has formed and has allowed for a temporary stabilization. Suggest LONG positions above 6.185 with targets @ 6.205 & 6.217 in extension. Below 6.185 look for further downside with 6.17 & 6.148 as targets. The central bank reported that new yuan loans written by Chinese financial institutions amounted to 852.7B yuan in November (vs 548.3B yuan in October), while the country's M0 money supply rose 3.5% YoY in November (vs +3.8% in October), M1 was up 3.2% (in line with the previous month) and M2 gained 12.3% YoY (vs +12.6% in October). Meanwhile, Ma Jun, the central bank's chief economist, pointed out that the country's economic growth may decelerate to 7.1% in 2015 due to a continuous slowdown in real estate investment.
USD/TWD intraday: supported by a rising trend line. The RSI is bullish and calls for further advance. Suggest LONG positions above 31.17 with targets @ 31.4 & 31.44 in extension. Below 31.17 look for further downside with 31.09 & 30.98 as targets. Meanwhile, according to local traders, the pair has been boosted by foreign fund outflows and importers' buying to settle oil transactions.
USD/KRW intraday: further advance. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Suggest LONG positions above 1095.6 with targets @ 1106.2 & 1108.7 in extension. Below 1095.6 look for further downside with 1093.3 & 1091.4 as targets. South Korea's November trade surplus was revised down to $5.51B from $5.61M previously estimated, according to the government.
USD/SGD intraday: under pressure. Technically, the pair remains under pressure below its key resistance at 1.3155, which should limit any upward attempts. The intraday RSI is turning down below its neutrality area at 50%, calling for further decline. As long as 1.3155 is resistance, look for choppy price action with a bearish bias. Suggest SHORT positions below 1.3155 with targets @ 1.307 & 1.304 in extension. Above 1.3155 look for further upside with 1.3175 & 1.3195 as targets.
USD/MYR intraday: as long as 3.486 is support look for 3.508. From a chartist point of view, the pair is still in an uptrend, supported by its intraday moving averages. The RSI remains above 50, without displaying any significant reversal signals. Besides, a strong support base has formed around 3.486. The MACD is below its signal line and positive. The pair could retrace, but its extent should be limited. Moreover, the pair is above its 20 and 50 MAs (respectively at 3.4881 and 3.4665).Suggest as long as 3.486 is support look for 3.508. Alternatively, below 3.486, expect 3.479 and 3.475.
USD/THB intraday: rebound towards 32.858. From an intraday perspective, the pair pulled back on its key support area around 32.758, which has been tested for at least 3 times. The failure to break below this threshold should be a strong positive signal, which indicates a technical rebound in sight. Furthermore, the MACD is above its signal line, and the pair stands below its 20 and 50 MAs (respectively at 32.8129 and 32.8745), which turn to be flat from a negative slope. Suggest rebound towards 32.858. Alternatively, only the downside breakout of 32.758 would call for 32.731 and 32.715.
USD/PHP intraday: rebound towards 44.658. From a technical point of view, the pair is approaching its intraday support at 44.496 (a horizontal level + the Bollinger Bands' lower boundary), and seems more likely to post some technical rebounds on it. The intraday RSI is turning up, but is still below its neutrality area at 50, which suggests a potential rebound with weak momentum. The MACD is above its signal line and negative, giving a mixed signal. The configuration is mixed, but as long as 44.496 is not broken down, we favor an intraday technical rebound towards 44.658 before any further downsides. Alternatively, only the downside breakout of 44.496 would call for 44.461 and 44.438.
USD/IDR intraday: the RSI is overbought as the RSI stays above its overbought area at 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). Meanwhile, the MACD is positive and above its signal line. Thus, the configuration is positive. Moreover, the pair stands above its 20 and 50 MAs (respectively at 12369.45 and 12301.928). Finally, the USD/IDR is trading above its upper Bollinger band (standing at 12456.962). To conclude, we suggest the upside prevails as long as 12429 is support. Keeping in mind that a downside breakout of 12429 would call for a consolidation to 12412 and 12401.
USD/INR intraday: bullish bias above 62.18. The former horizontal resistance level at 62.18 should now play a support role. Meanwhile, the pair is approaching its lower Bollinger Band and it should also be supported by its rising 50-period moving average. In addition, the RSI is still mixed to bullish as it lacks strong downward momentum. Thus we suggest long positions above 62.18 with targets @ 62.5 & 62.75 in extension. Alternatively, a break below 62.18 would call for further downside with 62.04 & 61.8 as targets.
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(END) Dow Jones Newswires
December 14, 2014 22:07 ET (03:07 GMT)
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0 Response to "USD/Asia Remains Bullish As Week Begins -- Asia Daily Forex Outlook"
Thanks for give comment.