Asian equities have rebounded firmly after the DXY turns volatile ahead of Jackson Hole.

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• Asian equities have rebounded firmly after the DXY turns volatile ahead of Jackson Hole.
• Back-to-back poor performances by the top-tier US data have weakened the DXY.
• Oil prices have crossed the critical hurdle of $95.00 firmly.

The pair currently trades last at 28481.56.

The previous day high was 28548.47 while the previous day low was 28269.12. The daily 38.2% Fib levels comes at 28441.76, expected to provide support. Similarly, the daily 61.8% fib level is at 28375.83, expected to provide support.

Markets in the Asian domain have rebounded sharply after a weak Wednesday, following the footprints of Wall Street. Asian equities have displayed a decent upside as the US dollar index (DXY) has slipped to near 108.50 and is expected to display more weakness ahead.

At the press time, Japan’s Nikkei225 jumped 0.60%, China A50 added 0.28%, and Nifty50 gained 0.54%. Hang Seng’s morning session has been canceled because of a severe storm warning.

The DXY has turned sideways after a downside move in the Asian session. Investors are dumping the DXY after back-to-back dismal performances by the US on its economic data front. From poor US Purchasing Managers Index (PMI) data that indicates contraction in the private sector to vulnerable US Durable Goods Orders, which signifies a slowdown in the overall demand.

Also, the decline in the top-tier US economic data has accelerated the odds of trim in the extent of interest rate hikes by the Federal Reserve (Fed). There is no denying the fact that the foremost priority of the Fed is to contain soaring price pressures. However, the economic activities seek an immediate response, which may compel the Fed to slow down the pace of hiking interest rates. Therefore, investors should brace for more retracement in the DXY after the commentary of Fed chair Jerome Powell at the Jackson Hole Economic Symposium.

Meanwhile, oil prices are driving higher like there is no tomorrow. After the announcement from OPEC that the cartel is considering production cuts to offset the recent carnage in the black gold, oil prices have got an adrenaline rush. Also, investors have ignored the downbeat global PMI numbers, which accelerates demand worries ahead.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 28481.56 at the time of writing. Pair opened at 28481.56 and is trading with a change of 0.0 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 28274.96, 50 SMA 27320.7, 100 SMA @ 27134.73 and 200 SMA @ 27452.22.

The previous day high was 28548.47 while the previous day low was 28269.12. The daily 38.2% Fib levels comes at 28441.76, expected to provide support. Similarly, the daily 61.8% fib level is at 28375.83, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 28317.63, 28153.7, 28038.28
• Pivot resistance is noted at 28596.98, 28712.4, 28876.33

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