Following the panic in Asia early this morning which saw the Shanghai Composite close down more than 7%, Eurozone indexes have continued the selloff with Germany’s DAX down more than 3%, UK FTSE and France’s CAC 40 down over 2.5%.
The US looks set to follow suit as markets remain shaken following China’s willingless to allow the Yuan to continue to fall as oil prices slide towards 12 year lows.
Gold is now trading at 1104.65 (up more than $40 this week alone) at time of writing which indicates just how nervous investors are as the turmoil eminating from China grips the world like a virus. Billionaire investor George Soros warned of a possible crisis saying “China has a major adjustment problem, I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008.”
In the US, higher than expected jobless claims released a short while back will have frustrated investors as the markets desperately seek some silver lining to what is currently a very dark cloud.
Trading quote of the day: “Volatility is greatest at turning points, diminishing as a new trend becomes established.” – George Soros
Green lines are resistance, Red lines are support.
Likely scenario: long positions above 1.077 with targets @ 1.0885 & 1.0945 in extension.
Alternative scenario: below 1.077 look for further downside with 1.0705 & 1.067 as targets.
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TIME IS IN GMT(+2)
Report prepared by the easy-forex VIP desk 14:35 GMT.
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