Asian indices have witnessed a stellar upside amid a soaring market mood. (Pivot Orderbook analysis)

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• Asian indices have witnessed a stellar upside amid a soaring market mood.
• A downward shift in China’s CPI data will force the PBOC to sound dovish.
• The DXY has slipped below 109.00 amid lower consensus for US inflation.

The pair currently trades last at 28095.57.

The previous day high was 27797.72 while the previous day low was 27549.4. The daily 38.2% Fib levels comes at 27702.86, expected to provide support. Similarly, the daily 61.8% fib level is at 27644.26, expected to provide support.

Indices in the Asian domain are witnessing significant bullish bets as the risk-off market tone has underpinned the risk-perceived assets. Asian equities are enjoying the ball as the US dollar index (DXY) has plunged on lower expectations for the US inflation rate, which will release next week.

At the press time, Japan’s Nikkei225 added 0.50%, China A50 jumped 1.56%, Hang Sang soared 2.56%, and Nifty50 gained 0.60%.

Chinese equities have been strengthened after releasing lower-than-expected inflation data. China’s Consumer Price Index (CPI) has landed at 2.5%, lower than the expectations and the prior release of 2.8% and 2.7% respectively on an annual basis. While the monthly figure is negative by 0.1% against 0.2% of expectations and 0.5% of former release.

A decline in China’s inflation will force the People’s Bank of China (PBOC) to sound dovish and trim the Prime Lending Rate (PLR) further. And, more liquidity flush into the economy will spurt the volumes in economic activities.

Meanwhile, the DXY has surrendered the crucial support of 109.00 as investors are expecting a decline in inflationary pressures. Falling gasoline prices in the US and higher interest rates by the Federal Reserve (Fed) have trimmed the consensus for the inflation data. However, the situation doesn’t trim the odds of a third consecutive 50 basis points (bps) interest rate hike by the Fed as the road to the desired rate of 2% is far from over.

On the oil front, oil prices have ignored a large build-up of oil inventories reported by the Energy Information Administration (EIA) last week. For the last week, oil stockpiles jumped by 8.844 million barrels against a decline of 3.326 million barrels.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 28095.57 at the time of writing. Pair opened at 27793.15 and is trading with a change of 1.09 % .

The pair is trading below its 20 Daily moving average @ 28349.95, above its 50 Daily moving average @ 27549.49 , above its 100 Daily moving average @ 27203.19 and above its 200 Daily moving average @ 27404.74

The previous day high was 27797.72 while the previous day low was 27549.4. The daily 38.2% Fib levels comes at 27702.86, expected to provide support. Similarly, the daily 61.8% fib level is at 27644.26, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 27629.13, 27465.1, 27380.81
• Pivot resistance is noted at 27877.45, 27961.74, 28125.77

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