AUDJPY, SiMSCI and HSI demonstrated very high levels of positive correlation in the past but this correlation ‘fell apart’ since 2017. Is this correlation still valid? If valid, what does AUDJPY’s recent trend portend for traders in these two Asian indices? Is it time to converge? Indices to fall some more?
Stock indices continue to be bullish. DAX 30 is correcting, Nikkei 225 could be correcting soon. Until 13-week ema is broken, no reason for alarm.
These could be leading elements of weakness among stock indices. Likely softening due to profit taking since they are not anywhere near to sweet spot that would entice sellers to come in.
It appears there is a big divergence between the usually highly correlated HSI, SiMSCI and AUDJPY. Who is smarter? The stock market or the forex market?
Look at EURUSD, AUDUSD, HSI and DXY. Despite ‘risk-on’ gap up today, big picture setup hasn’t changed one bit. I think Dollar still up, indices still down.
This is an end of Wk14, beginning of Wk 15 appraisal of the market. I am looking at the AUDUSD, EURUSD, XAUUSD, China A50 and a couple of other trades written about in the past 2 weeks.
Expect to see HSI test 25000 shortly. This is a 7-year high, prominent tried and tested resistance. This was a level forecast in 2015 and there is evidence that at least one other level forecast then was followed by the market.