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Hang Seng at Monthly Highs After Partial Trade Deal

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Nikolas Papas Forex Analyst
    Summary:
  • The Hang Seng index ended on positive foot for third day in a row at monthly highs, keeping the positive momentum as the index holds above the 50-day

Hang Seng and Asian indices ended higher on improved sentiment over the trade negotiations between officials from China and the USA in Washington. The Shanghai Composite ended 1.15% higher at 3,007, while the Singapore Straits Times is 0.25% higher at 3,121. Aussie stocks also finished higher; the ASX 200 ended 0.54% at 6,642.

The Hang Seng index finished 0.76% higher at 26,509 as President Donald Trump announced a partial trade deal, reaching agreement on intellectual property, financial services and big agricultural purchases.

Hang Seng Technical Analysis

The Hang Seng index ended on positive foot for third day in a row at monthly highs, keeping the positive momentum as the index holds above the 50-day moving average that breached last Friday. The index started a rebound from seven-week lows last Thursday boosted by positive trade talks news. On the upside resistance for the Hang Seng stands at 26,636 today’s high, a break above, will set the stage for a move up to 27,069 the 100-day moving average.

On the downside, immediate support stands at 26,386, today’s low and then at 26,164 the 50-day moving average. A break below that level might open the way for a move down to 25,543 the low from October 10th.

In Asian forex markets USDJPY trading 0.20% lower at 108.22 the Aussie dollar trades 0.43% lower at 0.6760, while NZDUSD trades 0.62% lower at 0.6296 versus USD. Gold trades higher today at 1,489, while WTI crude oil is 0.95 lower at $54.18 per barrel.

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