An escalation in the risk-off impulse has accelerated nervousness in Asian equities. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• An escalation in the risk-off impulse has accelerated nervousness in Asian equities.
• An unchanged PBOC monetary policy has triggered a sell-off in China’s indices.
• Oil prices soar as EIA reported a decline in oil stockpiles by 1.725M barrels.

The pair currently trades last at 27042.14.

The previous day high was 27273.81 while the previous day low was 26910.46. The daily 38.2% Fib levels comes at 27049.26, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27135.01, expected to provide resistance.

Markets in the Asian domain are displaying a vulnerable performance following the weak trend from S&P500. Equities are facing an intense sell-off amid a firmer rebound in the risk-off sentiment. Upbeat returns on the US government bonds have dragged the risk-sensitive assets into a negative trajectory. The 10-year US Treasury yields have recorded a fresh 14-year high at 4.15%. Returns on US bonds have lured investors, which has resulted in the liquidation of equities.

At the press time, Japan’s Nikkei225 tumbled 1.04%, ChinaA50 dropped almost 1%, Hang Seng plunged 1.66%, and Nifty50 eased 0.27%.

When the mighty US sneezes other countries catch a cold. Weak economic prospects revealed in Federal Reserve (Fed)’s Beige Book triggered the risk-off market mood and a flight of safety to the US dollar index (DXY). The DXY pushed towards the round-level resistance of 113.00. At the time of writing, the DXY has slipped to near 112.80 as S&P500 futures have trimmed their losses, however, the sentiment has not turned positive yet.

An announcement of an emergency bond-buying program worth $667 million by the Bank of Japan (BOJ) has triggered the risk of further weakness in the Japanese yen. The announcement followed commentary from Japan Prime Minister Fumio Kishida in which he cited the risk of weaker economic prospects due to external demand shocks.

Meanwhile, Chinese equities have witnessed an intense sell-off after the People’s Bank of China (PBOC) maintained the status quo by keeping Prime Lending Rate (PLR) unchanged. The one-year and five-year PLR remained steady at 3.65% and 4.30% respectively.

On the oil front, oil prices have climbed above $85.00 firmly after the Energy Information Administration (EIA) disclosed in decline in oil stockpiles by 1.725M barrels last week ending October 16.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 27042.14 at the time of writing. Pair opened at 27042.14 and is trading with a change of 0.0 % .

The pair is trading above its 20 Daily moving average @ 26809.99, below its 50 Daily moving average @ 27599.76 , below its 100 Daily moving average @ 27359.24 and below its 200 Daily moving average @ 27164.59

The previous day high was 27273.81 while the previous day low was 26910.46. The daily 38.2% Fib levels comes at 27049.26, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27135.01, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 26877.13, 26712.12, 26513.78
• Pivot resistance is noted at 27240.48, 27438.82, 27603.83

[/s2If]
Join Our Telegram Group