Asian stocks closed lower today following news that China’s securities regulator clamped down, urging domestic brokers to cease financing clients’ stock purchasing through swaps and over the counter contracts.

This latest move to reduce leveraged financing risk sparked fears amongst traders as limiting fresh capital investment could derail upward momentum of the regions markets.

These fears spilled over the entire region as markets took a nosedive with Shanghai Composite in particular hit hard, closing down 5.55%.

Elsewhere, USD remains dominant as it continues to make steady gains across the board. Gold remains under pressure showing no signs of recovery as it again edged lower.

As the US enjoyed Thanksgiving holiday on Thursday, European markets edged higher with the DAX positng a new 3.5 month high.

Today’s calendar remains light with UK Q3 GDP at 09:30 GMT the main highlight.

Quote of the day:

“Have no fear of perfection – you’ll never reach it.”

– Salvador Dalí

Green lines are resistance, Red lines are support.

EUR/USD
Pivot: 1.065
Likely scenario: Short positions below 1.065 with targets @ 1.0595 & 1.056 in extension.
Alternative scenario: Above 1.065 look for further upside with 1.068 & 1.071 as targets.
Comment: The RSI lacks upward momentum.

GBP/USD
Pivot: 1.5135
Likely scenario: Short positions below 1.5135 with targets @ 1.5065 & 1.5045 in extension.
Alternative scenario: Above 1.5135 look for further upside with 1.5155 & 1.519 as targets.
Comment: The RSI is badly directed.

AUD/USD
Pivot: 0.726
Likely scenario: Short positions below 0.726 with targets @ 0.7205 & 0.718 in extension.
Alternative scenario: Above 0.726 look for further upside with 0.7285 & 0.732 as targets.
Comment: A break below 0.7205 would trigger a drop towards 0.718.

USD/JPY
Pivot: 122.75
Likely scenario: Short positions below 122.75 with targets @ 122.2 & 122 in extension.
Alternative scenario: Above 122.75 look for further upside with 122.95 & 123.05 as targets.
Comment: The RSI is badly directed.

USD/CAD
Pivot: 1.3335
Likely scenario: Short positions below 1.3335 with targets @ 1.327 & 1.324 in extension.
Alternative scenario: Above 1.3335 look for further upside with 1.338 & 1.34 as targets.
Comment: As long as 1.3335 is resistance, look for choppy price action with a bearish bias.

USD/CHF
Pivot: 1.0195
Likely scenario: Long positions above 1.0195 with targets @ 1.026 & 1.028 in extension.
Alternative scenario: Below 1.0195 look for further downside with 1.017 & 1.014 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GOLD
Pivot: 1067
Likely scenario: Long positions above 1067 with targets @ 1075 & 1077.6 in extension.
Alternative scenario: Below 1067 look for further downside with 1063.5 & 1061 as targets.
Comment: Investors have to remain cautious since these levels may trigger profit taking.

OIL
Pivot: 43.45
Likely scenario: Short positions below 43.45 with targets @ 41.7 & 41.26 in extension.
Alternative scenario: Above 43.45 look for further upside with 43.9 & 44.52 as targets.
Comment: As long as 43.45 is resistance, likely decline to 41.7.

DAX
Pivot: 11110
Likely scenario: Long positions above 11110 with targets @ 11400 & 11480 in extension.
Alternative scenario: Below 11110 look for further downside with 10980 & 10865 as targets.
Comment: The immediate trend remains up and the momentum is strong.