Originally published by AxiTrader
Asian stock weakness was mildly resisted by European and US equity traders with markets finishing off their lows. But the fall in Asia's stocks and the weakness it speaks to, leaked into the region's currencies over the past 24 hours with the US dollar stronger across the broad spectrum of AsiaForex.
USDKRW is back above 1090 and sits at 1092 this morning, the Singapore dollar is likewise a little weaker at 1.3487 and closing n on the 1.35 level I've highlighted as the one which would confirm that the region's currency outlook is, in fact, turning rather than simply churning through a range.
The actual level of the downtrend this morning is 1.3511. A break of that level would be a decisive move for USD/SGD and signal it and the rest of the region's currencies have turned the corner and are now looking like they will lose ground against the US dollar.
Anyway, here's USD/GD.
Looking at stocks now and it was a poor day for Asia's bourses.
The KOSPI was pole-axed and closed right on the lows of the past couple of weeks. It's at 2475 this morning and needs to hold the 2,466 level which is the 38.2% retracement level of the big rally from 2314 if it is to avoid a deeper retracement.
The Nikkei really needs to hold above the 21,950/22,000 support zone while the Hang Seng closed right on support yesterday.
It has to hold above 28,128 (in MT4, futures) terms in order to forestall a deeper retracment.
It's no understatement to say today is a big day for Asia's bourses. Another day of weakness, especially if major levels give way, and the buy-the-dip crowd in Europe and the US might find it hard to gain traction.
Anyway, here's the Hang Seng.
Have a great day's trading.
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