Pointing out some observations of AUDUSD, AUDCAD and AUDJPY, price reaction to significant levels. Additionally note AUDJPY can be a prediction for Asian stock indices.
Hang Seng fever for SZHK is officially over. Hang Seng Index comes back to reality, converges with SiMSCI, realign their highly correlated movement.
History is repeating – without fundamentals to drive, speculation pumped the market up, speculation let the market down. We saw that from the SHHK action. This time the Hong Kong market is again driven by talk of SZ-HK. This is looking the same like last year. There is no explanation why the fundamentals are different/better this time. So again speculation will drive the market up and in time, speculation will let the market down all over again.
DXY, EURUSD and SiMSCI prints highly recurring false-break followed by re-test sequence that catches both bulls and bears on the wrong trade. When the market is playing mind games like these, watch for coming reversal.
Singapore stock index futures SiMSCI parked itself at a very interesting level with proposition for both long and short traders. This is the type of setup that many traders are going to trip over. Chart features below.