Market Brief: Asian Equities Mixed as Investors Digest Surge in Coronavirus Cases
Asian equities markets were mixed in today’s trading as investors digest the surge in yesterday’s coronavirus cases. The Nikkei 225 spent another day in the red. It finished today’s trading with a 140.1 point-loss at 23,687.6. Meanwhile, the Hang Seng Index and Shanghai Composite Ind are both trading in the green. HSI is up by 85.6 points at 27,815.6 while the later is in the green by 10.934 points 2,917.008.
Yesterday, risk aversion dominated market sentiment following the 14,480 increase in new coronavirus cases from China. Government officials were quick to point out that they changed their diagnostic methodology which was the main reason behind the surge. Today, only 5,090 new cases were reported. This may have eased some investor concerns which could help explain why Hong Kong and Shanghai stocks are trading higher.
On the 4-hour time frame, we can see that USDCHF has been consolidating with an upward slope. In forex trading, this chart pattern is often referred to as a rising wedge. It is considered as a bearish reversal pattern. A bearish close below today’s low at 0.9793 could mean that USDCHF may soon fall to support at its previous highs at 0.9750. If support there does not hold, the currency pair could test the 100 SMA and 200 SMA at 0.9715.
On the other hand, a strong bullish candle closing above 0.9800 would invalidate the bearish chart pattern. It could signal a possible rally to 0.9870 where USDCHF topped on December 13.