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.

EUR/USD

Pivot: 1.077

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.

Comment: the RSI is mixed to bullish.

GBP/USD

Pivot: 1.4645

Likely scenario: short positions below 1.4645 with targets @ 1.45 & 1.4475 in extension.

Alternative scenario: above 1.4645 look for further upside with 1.468 & 1.4725 as targets.

Comment: the RSI is badly directed.

AUD/USD

Pivot: 0.709

Likely scenario: short positions below 0.709 with targets @ 0.696 & 0.693 in extension.

Alternative scenario: above 0.709 look for further upside with 0.7135 & 0.7175 as targets.

Comment: the RSI is badly directed.

Trade Now

USD/JPY

Pivot: 118.3

Likely scenario: short positions below 118.3 with targets @ 117.25 & 116.75 in extension.

Alternative scenario: above 118.3 look for further upside with 118.8 & 119.3 as targets.

Comment: the RSI is mixed to bearish.

Trade Now

USD/CAD

Pivot: 1.402

Likely scenario: long positions above 1.402 with targets @ 1.4175 & 1.4245 in extension.

Alternative scenario: below 1.402 look for further downside with 1.397 & 1.3915 as targets.

Comment: the RSI is well directed.

Trade Now

GOLD

Pivot: 1104

Likely scenario: short positions below 1104 with targets @ 1091 & 1086 in extension.

Alternative scenario: above 1104 look for further upside with 1110 & 1114 as targets.

Comment: technically the RSI is below its neutrality area at 50.

Trade Now

OIL

Pivot: 33.37

Likely scenario: short positions below 33.37 with targets @ 31.8 & 31 in extension.

Alternative scenario: above 33.37 look for further upside with 34.3 & 35.15 as targets.

Comment: the immediate trend remains down and the momentum is strong.

Pivot: 10230DAX

Likely scenario: short positions below 10230 with targets @ 9750 & 9630 in extension.

Alternative scenario: above 10230 look for further upside with 10425 & 10625 as targets.