EU Session Bullet Report – Asian Stocks slide as oil drop intensifies

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Asian markets are dropping on Monday amid growing worries about the stability of the junk-bond market and tumbling oil prices. The declines in Asia came after the S&P fell 1.9% on Friday, the biggest daily drop since September as the price of U.S. crude oil fell below $36 a barrel. Investors were also cautious before the highly anticipated Federal Reserve policy meeting this Tuesday and Wednesday, when officials are widely expected to raise interest rates for the first time in almost a decade from ultralow levels. Higher rates are expected to draw investors back into the U.S. and away from riskier assets, including emerging markets and Asia.
Asian stock markets: Nikkei down 1.96 %, Shanghai Composite up 0.55 %, Hang Seng down 0.95 %, ASX 200 up 1.55 %

Commodities: Gold at $1075 (-0.03 %), Silver at $13.90 (+0.10 %), WTI Oil at $35.45 (-0.50 %), Brent Oil at $38.10 (-0.55 %)
Going ahead, investors will look forward to the Eurozone industrial production data for October, scheduled to be released in a few hours. Mario Draghi, ECB President will also speak later today.

Trading quote of the day:

Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.

George Soros

Green lines are resistance, Red lines are support.

EUR/USD
Pivot: 1.0925
Likley scenario: long positions above 1.0925 with targets @ 1.103 & 1.1075 in extension.
Alternative scenario: below 1.0925 look for further downside with 1.088 & 1.084 as targets.
Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GBP/USD
Pivot: 1.513
Likley scenario: long positions above 1.513 with targets @ 1.5245 & 1.531 in extension.
Alternative scenario: below 1.513 look for further downside with 1.5075 & 1.5035 as targets.
Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

 

AUD/USD
Pivot: 0.724
Likley scenario: short positions below 0.724 with targets @ 0.715 & 0.713 in extension.
Alternative scenario: above 0.724 look for further upside with 0.727 & 0.731 as targets.
Comment: even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.

3

USD/JPY
Pivot: 121.35
Likley scenario: short positions below 121.35 with targets @ 120.55 & 120.15 in extension.
Alternative scenario: above 121.35 look for further upside with 121.85 & 122.25 as targets.
Comment: the upward potential is likely to be limited by the resistance at 121.35.

4

USD/CAD
Pivot: 1.362
Likley scenario: long positions above 1.362 with targets @ 1.376 & 1.383 in extension.
Alternative scenario: below 1.362 look for further downside with 1.3565 & 1.3525 as targets.
Comment: technically the RSI is above its neutrality area at 50.

5

USD/CHF
Pivot: 0.9865
Likley scenario: short positions below 0.9865 with targets @ 0.9795 & 0.975 in extension.
Alternative scenario: above 0.9865 look for further upside with 0.9915 & 0.995 as targets.
Comment: the upward potential is likely to be limited by the resistance at 0.9865.

6

GOLD
Pivot: 1065.5
Likley scenario: long positions above 1065.5 with targets @ 1085.5 & 1089 in extension.
Alternative scenario: below 1065.5 look for further downside with 1058 & 1052 as targets.
Comment: the RSI is mixed to bullish.

7

OIL
Pivot: 36.4
Likley scenario: short positions below 36.4 with targets @ 35 & 34.52 in extension.
Alternative scenario: above 36.4 look for further upside with 37.5 & 38.2 as targets.
Comment: as long as 36.4 is resistance, likely decline to 35.

8

DAX
Pivot: 10570
Likely scenario: short positions below 10570 with targets @ 10260 & 10120 in extension.
Alternative scenario: above 10570 look for further upside with 10720 & 10830 as targets.
Comment: as long as 10570 is resistance, look for choppy price action with a bearish bias.

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TIME IS IN GMT(+2)

Report prepared by the easy-forex VIP desk at 06:20 GMT.

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Source:: EU Session Bullet Report – Asian Stocks slide as oil drop intensifies

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