Asian indices have defended the downside momentum as US yields cooled off. (Pivot Orderbook analysis)

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• Asian indices have defended the downside momentum as US yields cooled off.
• The Chinese government is planning to purchase bonds worth 2.5 trillion yuan in the fourth quarter.
• Oil prices have recaptured the $80.00 hurdle as EIA reported a decline in oil inventories.

The pair currently trades last at 26776.87.

The previous day high was 26816.39 while the previous day low was 26200.22. The daily 38.2% Fib levels comes at 26581.01, expected to provide support. Similarly, the daily 61.8% fib level is at 26435.6, expected to provide support.

Markets in the Asian domain have picked significant bids after a decline after a few trading sessions. Asian indices have bounced back sharply after the 10-year benchmark US Treasury yields plunged. After hitting a high of 4% for the first time since 2010, yields have fallen sharply to nearly 3.76%. This has underpinned the risk-on impulse and risk-sensitive assets are having a ball.

At the press time, Japan’s Nikkei225 jumped 0.92%, ChinaA50 added 0.38%, and Hang Seng surged more than 1%.

The US dollar index (DXY) witnessed a steel fall after failing to sustain above the crucial hurdle of 114.50. As investors have started acknowledging the fact that the Federal Reserve (Fed) will slow down the pace of hiking interest rates post bigger rate hikes in the first week of November and mid of December, the DXY is losing its appeal.

Moreover, investors are also punishing the DXY amid lower consensus for the US Gross Domestic Product (GDP). As per the consensus, the growth rate in the US economy has declined by 0.6% in the second quarter on an annualized basis.

Meanwhile, the Chinese Finance ministry is planning to issue government bonds worth 2.5 trillion yuan in the fourth quarter, as reported by Reuters. The decision is supposed to safeguard the markets from any further turmoil as the economy is not expected to display a decent growth rate amid zero tolerance for Covid-19 spread and the real estate crisis.

On the oil front, oil prices have rebounded firmly after remaining in the grip of bears. The black gold has overstepped the psychological resistance of $80.00 after displaying a decline in the US oil inventories reported by the Energy Information Administration (EIA). The oil stockpiles declined by 0.215 million barrels for the past week ending September 23.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 26776.87 at the time of writing. Pair opened at 26776.87 and is trading with a change of 0.0 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 27517.21, 50 SMA 27899.09, 100 SMA @ 27324.44 and 200 SMA @ 27314.45.

The previous day high was 26816.39 while the previous day low was 26200.22. The daily 38.2% Fib levels comes at 26581.01, expected to provide support. Similarly, the daily 61.8% fib level is at 26435.6, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 26379.26, 25981.66, 25763.09
• Pivot resistance is noted at 26995.43, 27214.0, 27611.6

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