Asian indices maintained harmony despite the sell-off in the US markets. (Pivot Orderbook analysis)

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• Asian indices maintained harmony despite the sell-off in the US markets.
• Easing Covid-19 lockdown measures in China have strengthened respective indices.
• The oil price has turned sideways after a bloodbath amid renewed fears of extreme policy tightening by the Fed.

The pair currently trades last at 27691.89.

The previous day high was 27886.13 while the previous day low was 27637.0. The daily 38.2% Fib levels comes at 27732.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27790.96, expected to provide resistance.

Markets in the Asian domain are trading positively despite intense volatility in the European and the United States markets on Monday. Asian equities are defending the risk aversion theme inspired by renewed fears of a bigger rate hike by the Federal Reserve (Fed) in its monetary policy meeting next week. Meanwhile, S&P500 futures have attempted a recovery in Tokyo session after plunging on Monday.

At the press time, Japan’s Nikkei225 added 0.30%, ChinaA50 jumped 1.27%, Hang Seng dropped 0.90%, and Nifty eased 0.55%.

Equities in the United States faced immense pressure after the release of the solid US ISM Services PMI as it indicated that the US economy is healthy, demand is robust and the Federal Reserve (Fed) is needed to tighten policy extremely to propel a slowdown. Last week, an upbeat November employment report failed to provide a cushion to the US Dollar Index (DXY). But now, the upbeat service sector has fueled optimism in the US economy.

Chinese equities are aiming higher as easing Covid-19 lockdown measures in various cities has infused optimism. Investors are of the view that the reopening of the dragon economy will force institutions to roll back weak economic projections. Going forward, the market participants will keep an eye on Consumer Price Index (CPI), which will release on

In the Asia-Pacific region, the Reserve Bank of Australia (RBA) has hiked its Official Cash Rate (OCR) by 25 basis points (bps) to 3.10%. This is the third consecutive 25 bps rate hike by RBA Governor Philip Lowe.

On the oil front, the oil price has turned sideways in Tokyo after a bloodbath on Monday. Renewed fears of a bumper rate hike by the Fed have resulted in weaker economic projections. A continuation of the current rate hike pace by the Fed would accelerate financial risks ahead. Going forward, Russia’s denial of providing oil at a novel price cap could provide a cushion to oil prices.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 27691.89 at the time of writing. Pair opened at 27691.89 and is trading with a change of 0.0 % .

The pair is trading below its 20 Daily moving average @ 28041.11, above its 50 Daily moving average @ 27450.82 , above its 100 Daily moving average @ 27681.93 and above its 200 Daily moving average @ 27235.81

The previous day high was 27886.13 while the previous day low was 27637.0. The daily 38.2% Fib levels comes at 27732.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27790.96, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 27590.55, 27489.21, 27341.42
• Pivot resistance is noted at 27839.68, 27987.47, 28088.81

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