Europe Open: Hurricane Sandy beats bulls into submission.

EUR/USD H1

EUR/USD broke 1.29 during early Europe session. Price appear to be supported  around last Friday’s low around 1.288 and also around today’s L4 of 1.2894. Friday’s High of 1.2955 could still provide resistance if price move higher from here, while a break of current levels opens up 1.286 as next level target.

GBP/USD H1

Cable broke Friday’s low and also L3/L4 support along the way, looking to head towards L5 which coincides with 24th Oct resistance. 1.61 round number remains as resistance and a push above could bring trading range between 1.608 – 1.614 back into focus.

DAX Futures M30

Prices failed to push above round number 7,250 and 25th Oct highs. We opened today lower into L3/L4 support. Price could find further support around L4 level of 7,180 which is the top end of early Europe session on Friday. 7,250 remains resistance for any movement upwards.

FTSE 100 Futures M30

Price opened below 24th-25th price range despite price closing within the range last Friday. 5,785 will provide resistance today while bears will wish to break below Friday’s low of around 5,750 for further downward momentum.

Brent Crude Oil H1

Crude oil has been trending mostly within 108 – 110.0 for the past 3 trading days, and early Europe session does not suggest we may break the mold. L4  around $109 (and incidentally 50% of the trading range) is acting as support against today’s downward momentum. Break of L4 opens up 108 which is also close to today’s L5.

Bottomline:

Monday blues for market as Europe open mostly lower. Some analysts attribute this lack luster morning to Hurricane Sandy which has forced the US exchanges to close, but certainly markets are weary about the lack of action from ECB, Spain and Greece. Spain is slated to make announcement regarding repurchasing of toxic assets to help save her local banks. Perhaps this may the jab in the arm that the bulls need to break away from this downbeat market. 

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