How to trade the first hours of the Asian session

With the opening of the markets at 00:00 hours, the traders will begin to accumulate Trump's intentions to impose new $ 200 billion in tariffs. against China as early as Monday morning. In such a case, it is good to look for JPY purchases and shorter Chinese stock indices.

AUD/JPY provides the best opportunity for Short, both technically and fundamentally. The Australian will remain under pressure until we see a lasting solution between the US and China on a trade dispute that will at the same time inspire confidence in JPY bulls. Let's take a look at the daily chart:

The pair is in a downward trend and in very suited levels, both intranight during the Asian session and in the short term to test the bottom formed early last week. The price forms a corrective movement to a resistance zone formed by a major internal horizon and an upper diagonal of the downward groove. The price is close and up to 23.6% Fibonacci correction of the main trend. Positioning should be the first upside adjustment and short-term resistance.

During the Asian session, I expect to reach its peak in the minutes after the opening of Chinese stock markets when a large number of investors will need to hedge their equity portfolios. It is then that I expect the pressure on the Asian indices to increase and, in the end, Asia will close the red session.

After the downgrades in Asia, I expect a negative sentiment to cover Europe where growth will be limited. A good deal during the European session tomorrow should be focused on a share portfolio hedge rather than profiting. I look forward to a consolidation European session, especially by weighing the empty economic calendar on Monday.

12:00 Eurozone - CPI

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