Europe Open: Weak PMI weighs on heavy European Markets ahead of FOMC.

EUR/USD H1

EUR/USD has been posting lower lows and lower highs since 17th Oct and bearish momentum does not seem to be letting up. Bulls failed to push price back to 1.30 and aggressive selling is seen early Europe session. Yesterday’s low/L3 has been broken and L4 could still act as support today.

GBP/USD H1

Rally during Asian hours was capped by 1.60 which is support turned resistance. Currently price trades below the H3/H4 band, opening up L3 and Yesterday’s Low as potential support should price reach there intraday.

DAX Futures M30

Potential tweezers bottom candlestick pattern formed just around L3/Yesterday’s low and round number of 7,150. Topside resistance could be found around around 7,200 round number which is also the previous swing high. Above that would be 7,250 which is within H3/H4 resistance area.

FTSE 100 Futures M30

Price finding support around Yesterday’s Low. Currently trading around 5,790 with H4 around 5,850 acting as strong resistance and 5,735 (close to 1st Oct low) being support.

Brent Crude Oil H1

Crude bounced off $108 support right straight into resistance zone of H3/H4, barely testing the lows of 22nd Oct around $110. Traders will be looking at US Inventory today (10:30am EDT) for further direction.

Bottomline:

Weakness in US corporate earnings spilling over to Europe. Euro-Zone weakest PMI in 40 months is not helping matters as risk appetite quickly deteriorate. FOMC decision this afternoon (2:30pm EDT) may change sentiment significantly if the Fed decides to expand current QE policy.

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