Europe Open: Bears taking a break for the long run?

EUR/USD H1

After late session sell-off during US hour, price managed to stay supported by Yesterday’s low and managed to push above L3/L4 region. Today’s H3 may act as resistance for any rebound while a break below 1.283 may accelerate price action to seek L5 slightly below 1.28 (not shown on chart) .

GBP/USD H1

Relatively muted action yesterday and today’s Asian session which saw Cable trading within a 50 pip range. Today’s H3 acting as a strong intraday resistance, but Bears may be kept at bay today should the consolidation zone extends itself. Similar to Fiber, L3/L4 region will act as support with a break leading to L5.

DAX Futures M30

Prices continued to trade lower after the bearish breakout this week. Using yesterday’s price action as a guide, we could see Yesterday’s Low providing significant support. Upside resistance can be found around H4 levels which is also the consolidation area on 9th and 10th Oct.

FTSE 100 Futures M30

Bulls face potential resistance between H3-H4 region while bears may be supported around Yesterday’s Low and Today’s L3. Break below L3 will open up L4 and eventually L5 as potential downside targets.

Brent Crude Oil H1

Strength in Crude continued this week due to Middle Eastern crisis. We’re currently back to price levels before the “flash sell” in September which saw Brent went all the way down to 107.5 within a few days, brought about by fears of US releasing their Strategic Petroleum Reserve to push down prices. Now that appears to be all but forgotten, the only strong downside risk for Oil would be the failing economy.

Bottomline:

After strong selling yesterday, perhaps a reprieve is in order? Prices appears to be broadly supported across different asset classes during Asian session, but how long and how far can this rebound last without any change in fundamentals? Continue to stay sharp as the markets wait for Spain to make the announcement all bulls are hoping to hear.

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