Weakness see towards end of US session which continued into early Asian session. Only saving grace was slightly better than expected Chinese economic data which pushed EUR/USD from the lows of 1.309 back above 1.3110. Unfortunately bulls were not able to hold on and we’re currently trading around L3 attempting to push lower. Key level today will be 1.3085 which is the previous swing low after early Asian rally on 17th Oct.
Trading back into the Rising Channel with L3 acting as intraday support. Current levels could find additional support from the highs of 16th Oct which was the resistance for 17th Oct before European rally.
DAX Futures M30
Price gapped higher but was faced with selling pressure immediately on market open. A break below Yesterday’s high and today’s H3 will open up yesterday’s trading/consolidation range back in play.
FTSE 100 Futures M30
Potentially significant break with price trading below 2 upward rising trendline and Yesterday’s High acting as a resistance today. Price could yet find support around L3/L4 level, however a stronger support could be located just below L4 along 16th Oct consolidation.
Brent Crude Oil H1
Trading slightly below $114.0 per barrel, with Asian rally unable to push beyond $114.50/H3 level. $114.0 is a strong support in itself, nonetheless a drop below 114.0 towards 113.70 (yesterday’s low) will not invalidate 114.0 relevance as a support as evident back on 15th Oct, and more recently during yesterday’s New York closing.
Finally some form of weakness in bullish momentum as Europe does not open as optimistic as the past few days. Bulls could be taking profit from previous rallies before EU Economic Summit to lower risk exposure in case of downside surprises. Spanish 10yr Auction will also provide some indication on how bullish/bearish market will be today and potentially the rest of the week.
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