Asian Forex Session Overview

Statistic data revealed duting the Asian session has shown that China’s import dropped sharply by 15.3% YoY in January and the export also declined by 0.5% from a year earlier, enlarging the trade surplus to USD 27.28 billion in the same month. Japanese domestic CGPI rose 0.5% YoY in January and declined by 0.1% MoM. In Australia, RBA said in its quarterly monetary policy statement that current monetary policy is appropriate and the economic growth rate is expected to be steady at around 3.5% though the growth may increasingly depend on commodity export and mining.

In stock markets, Nikkei 225 Index declined 0.61%; Shanghai Composite Index rose 0.10%; Australia’s ASX 200 Index declined 0.88%; Hong Kong’s Hang Seng Index dropped 1.19% at the time of writing.

EUR/USD:

The pair traded in a tight range between 1.3270 and 1.3290 in the first half of the session and edged lower to 1.3254 in the second half of the session. Initial support may be found at 1.3240 and then 1.3215/20. 

ADX shows the trend strength has been increasing since the beginning of the decline in the session, MACD still takes bearish tone, while stochastic has given a reverse signal in overselling area. The price is now getting close to the lower band of bollinger bands, which shows the volatility increased a little in the second half of the session.

R: 1.3285/90, 1.3320

S: 1.3240, 1.3214

GBP/USD: 

The cable has been under pressure since the beginning of the session and has declined to 1.5781 from 1.5814 so far. The price has broken the support line near 1.5790 and next support may be seen at 1.5770/75. 

ADX shows the trend strength has increased since the beginning of the session and now moves around 58, MACD keeps bearish tone, but stochastic has given buying signal in overselling area and so does the RSI, meanwhile, the price has rebounded from the lower band of bollinger bands, suggesting a possible correction. 

R: 1.5817, 1.5860, 1.5891

S: 1.5770/75, 1.5754, 1.5718

USD/JPY:

The pair traded quietly in a tight 77.62/77.74 rang in the morning and suddenly slid to 77.51 in the noon. But before long the pair started to retake its lost ground. At the end of the session, the pair is trading around 77.65. 

ADX is steady around 36, MACD is neutral while stochastic keeps mild bullish tone and is very close to overbought area. 

R: 77.74, 77.85

S: 77.49, 77.28

XAU/USD: 

The pair started the session with a growth, but the rise was capped by 1734 resistance level. After that, the pair has consolidated between 1729 and the resistance level for the rest of the session. ADX shows very low strength of the trend, MACD is neutral while stochastic takes bearish tone. 

R: 1734, 1740, 1763

S: 1725, 1710