Fri, Oct 07, 2022 @ 06:06 GMT
HomeLive CommentsChina Shanghai Composite down but not out, AUDUSD attempts down trend resumption

China Shanghai Composite down but not out, AUDUSD attempts down trend resumption

Following selloff in Asia, Major European indices are all trading in red in initial trading. At the time of writing, DAX is down -1.4%, CAC down -1.2%, FTSE down -1.3%. But they are kept well above last week’s low, suggesting that selling is not too serious.

The China SSE composite closed down -49.85 pts, or -1.76% at 2777.77. While SSE lose 2800 handle again, it’s kept well above last week’s low at 2691.02. We’ve mentioned a number of times that 2638.30 – 2700 zone represents important support level. Judging from the fact that SSE close just slightly lower than open at 2780.70, there was no panic selling. We’re holding on to the case that 2691.02 is at least a short term bottom and there should be another rise through 2848.37 to extend the corrective rebound.

In the currency markets, Australian Dollar remains the weakest one for today, with AUD/USD as the biggest loser.

From Action Bias point of view, the string of downside red bar in H Action Bias is hinting at down trend resumption. The break of 0.7414 minor support today is another signal on it. But we’d wait for 6H Action Bias to turn red too to give us more confidence on it. After all, we see 0.7328 as an important medium term support that takes some determination to break.

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