Risk aversion continues to intensify. AUD, NZD and CAD remain the weakest one is general. USD is catching up in US session. However, EURUSD and GBP/USD are staying in familiar range. USD/CHF breached 0.9908 support but quickly recovered. USD/JPY also breached 112.30 support but quickly recovered too. More is needed to prove Dollar’s weakness.

In Europe:

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  • DAX closed down -3.61% or -404.79 pts at 10795.45. Below key support level, 2018 low (made in Nov) at 11009.25.
  • CAC closed down -3.58%, or -117.04 pts at 4767.33. Below key support level, 2018 low (made in Nov) at 4894.30.
  • FTSE closed down -3.53% or -244.15 pts at 6677.68. Below key support level, 2018 low (made in Oct) at 6851.59.
  • German 10 year yield dropped -0.0436 to 0.234, lowest since one-day spike low at 0.186 on May 29.

In US:

  • DOW is down -2.48% or -622pts at 24404.
  • S&P 500 is down -2.68%
  • NASDAQ is down -2.19%
  • 10 year yield is down -0.082 at 2.842

DOW breached Nov low of 24268.74 to as low as 24242.22. Oversold condition might bring brief recovery. But further decline should be seen to 24122.23 support in near term.

10 year yield has broken 55 week EMA and is now in proximity to 2.808 key support level. For now, strong support is still preferred around this level. But considering bearish divergence condition in weekly MACD, break of 2.808 would be a strong sign of medium term reversal. And deeper fall would be seen back to 2.034/2.621 support zone.


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