Sample Category Title

Pivot (invalidation): 1.2930

Our preference Long positions above 1.2930 with targets at 1.2975 & 1.3000 in extension.

Alternative scenario Below 1.2930 look for further downside with 1.2910 & 1.2885 as targets.

Comment The RSI is bullish and calls for further advance.

Pivot (invalidation): 0.9930

Our preference Short positions below 0.9930 with targets at 0.9905 & 0.9890 in extension.

Alternative scenario Above 0.9930 look for further upside with 0.9950 & 0.9970 as targets.

Comment A break below 0.9905 would trigger a drop towards 0.9890.

Yen surges broadly in European session while deep selling is seen in Canadian Dollar, Euro and Sterling. The lack of movement in Australian and New Zealand Dollar so far suggested that the movements are not Asia or China related, even though Shanghai SSE dropped -3.72%.

Instead, investors are getting more nervous on Italy as its 10 year bond yield jumps to new 4.5 year high above 3.6000. On the other hand, German 10 year bund yield is down -0.045 at 0.532. That is, German-Italian spread is above the 300 alarming level.

EUR/JPY's steep fall should confirm near term reversal for 127.85 support and possibly further back to 124.89 key support.

The development also drags down USD/JPY through 113.51 minor support for deeper pull back.

Eurozone Sentix Investor Confidence dropped to 11.4 in October, down from 12, matched expectations. Sentix noted in the release "uncertainties about the fiscal policy stance in Italy and the automobile industry in Germany are depressing the sentiment". Meanwhile, the US economy remains strong with "assessment of the situation rises to an all-time high and raises investors' expectations of rising inflation rates and a restrictive central bank policy". Sentix added the situation value at 66.5 "signal overheating".

On Eurozone, Sentix said the economy is "recording a further slight slowdown". That was attributable to current situation values which dropped to 33.0, lowest since April 2017. But Sentix also said the data "do not represent a fundamentally new assessment by investors" as expectation value was "hardly changed".

Full release here

Pivot (invalidation): 113.55

Our preference Long positions above 113.55 with targets at 113.95 & 114.25 in extension.

Alternative scenario Below 113.55 look for further downside with 113.30 & 113.00 as targets.

Comment The RSI is bullish and calls for further upside.

Pivot (invalidation): 1.3090

Our preference Long positions above 1.3090 with targets at 1.3135 & 1.3155 in extension.

Alternative scenario Below 1.3090 look for further downside with 1.3060 & 1.3030 as targets.

Comment Technically the RSI is above its neutrality area at 50.

Pivot (invalidation): 1.1500

Our preference Long positions above 1.1500 with targets at 1.1540 & 1.1555 in extension.

Alternative scenario Below 1.1500 look for further downside with 1.1480 & 1.1460 as targets.

Comment Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Pivot (invalidation): 2904.00

Our preference Short positions below 2904.00 with targets at 2869.25 & 2864.00 in extension.

Alternative scenario Above 2904.00 look for further upside with 2910.00 & 2917.75 as targets.

Comment The RSI is mixed to bearish

The Chinese Yuan suffers renewed selling after the market came back from holiday and closed. China Shanghai SSE closed down -3.72% at 2716.51after selling pressured increased in the afternoon. USD/CNH (offshore Yuan), is currently up 0.5% at 6.9229. the choppy rise from 6.7776 will very likely extend to retest 6.9586 high.

But for now, we don't yet see enough momentum to get through 6.9586 to resume the up trend from 6.2358.

Pivot (invalidation): 12185.00

Our preferenceShort positions below 12185.00 with targets at 12040.00 & 12000.00 in extension.

Alternative scenario Above 12185.00 look for further upside with 12280.00 & 12350.00 as targets.

Comment The RSI is bearish and calls for further decline