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Forex news -forex broker review => Forex => Topic started by: PocketOption on Sep 02, 2022, 05:54 am

Title: THE LONDON OPENING 31-08-2022
Post by: PocketOption on Sep 02, 2022, 05:54 am
THE LONDON OPENING 31-08-2022

EUROPEAN EQUITIES TRY TO REBOUND AFTER ANOTHER DIFFICULT DAY AND A MIXED ASIAN SESSION; CHINA’S PMI DATA CAME IN MIXED, WHILE THE WTI LOST ALL ITS RECENT GAINS.


European stocks try to rebound this morning, with all the mainland’s major indexes opening trading in the positive, after a mixed Asian session, where the ChinaA50 index gained 1.16%, while the ASX200 and Nikkei gave up 0.16% and 0.45%, respectively. Yesterday was once again difficult for the world’s major stock exchanges, except for the Dax, which closed well above parity at +0.53%. This morning, however, PMI data from China were mixed, with the Composite PMI falling for the second month in a row and lower than expected (51.7 vs 52.3), while the Manufacturing PMI was up from the previous month and beat expectations (49.4 vs 49.2). However, remaining below the 50 mark, this figure signals that we are still in a contractionary phase. Today’s morning should be pretty quiet, at least until the release of the critical European inflation figure, which, if confirmed as expected at 9.0%, would put even more pressure on the ECB to raise interest rates sharply at its next monetary policy meeting.


On the commodities front, of note is oil, which gave up all of its recent gains in yesterday’s session alone, surrendering more than 5%, while gold continues its decline and trades at its lowest in more than a month. On the currency front, on the other hand, the dollar is stable, albeit slightly retracing from recent multi-year highs.


As for the economic calendar, investors’ focus today will be on European inflation, German labour market data, Canadian GDP, and, in the U.S., the ADP Nonfarm unemployment change. Especially the latter data could bring volatility, as it is often a good anticipator of the Nonfarm payrolls to be released on Friday.




EURUSD, M15



The EURUSD continues the sideways trend undertaken yesterday night between the W-1 VAH and the Current weekly VAH. It is clear how the market is waiting for the critical CPI data this morning to look for direction. From a technical point of view, the most significant intraday support is the W-1 VAH. If prices break the support downward, a move towards the Daily LVN and the W-1 POC is expected. On the other hand, a stretch to the LVN around 1.0076 becomes the most likely scenario if prices break the current weekly VAH and consolidate above it.


Main intraday support areas where to look for long trades in case of bullish candlestick pattern or short trades in case of bearish candlestick pattern: 1.0021, 0.9982-0.9972.


Main intraday resistances areas where to look for short trades in case of bearish candlestick pattern or long trades in case of bullish candlestick pattern: 1.0036, 1.0076.


GBPUSD, M15



The Cable showed less relative strength than EURUSD and is still trading far below the last week’s Value Area. From a technical point of view, the most significant intraday support area is the current weekly VAL, while the most significant resistance area is the W-1 VAH. As long as prices remain below the resistance area, especially if they break the support downward, the most likely scenario is a continuation of the drop to retest yesterday’s low around 1.1620 and 1.16 in extension. On the other hand, a good rebound is expected only if the pair can overcome the W-1 VAL.


Main intraday support areas where to look for long trades in case of bullish candlestick pattern or short trades in case of bearish candlestick pattern: 1.1667, 1.1620, 1.16.


Main intraday resistances areas where to look for short trades in case of bearish candlestick pattern or long trades in case of bullish candlestick pattern: 1.1738, 1.1762, 1.1821.


The post THE LONDON OPENING 31-08-2022 appeared first on Key To Markets Blog.


Source: THE LONDON OPENING 31-08-2022 (https://www.keytomarkets.com/blog/analysis/the-london-opening-31-08-2022-14817/)