Asian equities are witnessing selling pressure amid a risk-off market mood, Pivot Orderbook analysis

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE and login below to read further [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Asian equities are witnessing selling pressure amid a risk-off market mood.
• Chinese equities have declined after the downbeat Caixin Manufacturing PMI data.
• The DXY is attempting to establish above 109.00 ahead of US ISM PMI.

The pair currently trades last at 27853.86.

The previous day high was 28113.56 while the previous day low was 27817.61. The daily 38.2% Fib levels comes at 27930.66, expected to provide resistance. Similarly, the daily 61.8% fib level is at 28000.51, expected to provide resistance.

Markets in the Asian domain have witnessed a significant fall as investors have turned risk-averse ahead of the US ISM Manufacturing PMI data. Asian equities are facing the wrath of downbeat consensus for the US economic data. Also, the US dollar index (DXY) has displayed limited gains in the Asian session.

At the press time, Japan’s Nikkei225 plunged 1.60%, China A50 surrendered 0.46%, Hang Seng plummeted 1.52%, and Nifty50 surrendered 0.52%, however, the Indian 50-stock basket has recovered a majority of its losses after a gap down opening.

Japanese indices have witnessed a steep fall as the Bank of Japan (BOJ) announced a fixed-rate purchase plan for the cheapest to deliver Japanese Government Bonds (JGBs) consecutively for the 357th time for an extended period of time, as per Reuters. This will weaken the Japanese yen further due to more liquidity infusion in the economy. It will make imports more costly, hence it will impact corporate margins due to costly imported raw materials.

On the China front, the world’s second-largest economy is facing the headwinds of a lower growth rate. Chinese equities have witnessed selling pressure after the release of the downbeat Caixin Manufacturing PMI data. The economic data has been trimmed to 49.5 against the consensus of 50.2 and the prior release of 50.4. This has soared signs of de-growth in China.

Meanwhile, the US dollar index (DXY) is attempting an establishment above 109.00. The DXY is aiming higher as investors have ignored the lower consensus for US ISM Manufacturing PMI and are focusing on more rate hikes by the Federal Reserve (Fed) in its September monetary policy meeting. The Manufacturing PMI data is seen at 52.0 vs. 52.8 in the former release.

Technical Levels: Supports and Resistances

EURUSD currently trading at 27853.86 at the time of writing. Pair opened at 27853.86 and is trading with a change of 0.0 % .

The pair is trading below its 20 Daily moving average @ 28349.37, above its 50 Daily moving average @ 27523.64 , above its 100 Daily moving average @ 27188.3 and above its 200 Daily moving average @ 27414.52

The previous day high was 28113.56 while the previous day low was 27817.61. The daily 38.2% Fib levels comes at 27930.66, expected to provide resistance. Similarly, the daily 61.8% fib level is at 28000.51, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 27743.13, 27632.39, 27447.18
• Pivot resistance is noted at 28039.08, 28224.29, 28335.03

[/s2If]
Join Our Telegram Group