The risk-off market tone has brought a sell-off in Asian indices. (Pivot Orderbook analysis)

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• The risk-off market tone has brought a sell-off in Asian indices.
• US markets will remain closed on account of Columbus Day.
• Escalating Japan-North Korea tensions may buzz longer on North Korean Kim’s suspicious comments.

The pair currently trades last at 26790.24.

The previous day high was 27257.18 while the previous day low was 26729.17. The daily 38.2% Fib levels comes at 26930.87, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27055.48, expected to provide resistance.

Markets in the Asian domain are displaying a weak performance following the footprints of weaker S&P500 recorded in Friday. Also, the latter index futures have continued its sluggish performance on Monday. Firmer US Nonfarm Payrolls (NFP) data and geopolitical tensions between Japan and North Korea have strengthened the negative market sentiment, which has forced the market participants to bank on sell-off.

At the press time, Japan’s Nikkei225 dropped 0.71%, ChinaA50 tumbled 1.10% and Hang Seng nosedived 2.44%.

Escalating Japan-North Korea tensions amid the recurring firing of ballistic missiles by Kim Jong-un region around Pyongyang without prior notice of any equipment has strengthened the case of demolishing harmony in Japan. Including two missile launches on Sunday, counting has increased to seven. Adding to that, the suspicious commentary from the North Korean leader has also intensified the risk of escalating tensions further.

North Korean leading Kim stated that their administration need not have a dialogue with the economy and the former will continue to strengthen its nuclear operations ahead, as reported by Reuters.

Meanwhile, Chinese equities are facing a sell-off after the conclusion of the Golden Week Holiday. A long week holiday is responsible for the suspension of economic activities, which will display its impact in the coming weeks. A major impact will be seen on Chinese Manufacturing PMI data, which is been discounting by investors.

The US dollar index (DXY) is struggling to cross the immediate hurdle of 112.80 and broadly displaying a sideways movement as less activity is expected from the US markets due to the extended weekend.

On the oil front, oil prices have corrected to near $90.70 after facing barricades at around $92.00. The impact of mega production cuts by OPEC+ has pushed the oil process into a bullish trajectory. Going forward, bets over the extent of the rate hike by the Federal Reserve (Fed) will decide the direction of the oil prices as a higher rate hike by the Fed will trim the overall demand, and henceforth the demand for oil.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 26790.24 at the time of writing. Pair opened at 26790.24 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 @ 27185.07, 50 SMA 27785.73, 100 SMA @ 27365.3 and 200 SMA @ 27245.14.

The previous day high was 27257.18 while the previous day low was 26729.17. The daily 38.2% Fib levels comes at 26930.87, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27055.48, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 26593.88, 26397.52, 26065.87
• Pivot resistance is noted at 27121.89, 27453.54, 27649.9

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