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US OPENING BELL 09-12-2022

Started by PocketOption, Dec 09, 2022, 02:14 pm

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PocketOption

US OPENING BELL 09-12-2022

EUROPEAN STOCKS ARE TRYING TO RECOVER FROM A DIFFICULT WEEK AHEAD OF THE US OPENING; INVESTORS’ FOCUS IS ON US PPI DATA AS A PRECURSOR OF NEXT WEEK’S CPI DATA; IN THE MEANTIME, TO PROMOTE GROWTH, THE UK HAS ANNOUNCED SIGNIFICANT FINANCIAL SECTOR REFORM.


This morning, the major European indices seem to be recovering their losses after a difficult week and ahead of the US opening. Currently, the Dax gains 0.57%, the Cac40 0.29% and the Eurostoxx 0.38%.


Although market sentiment remains very fragile, investors are trying to regain optimism ahead of the most critical data to be released today: the PPI in the States. This figure, which on a monthly basis is seen at 0.2% (same as the previous month) and on a year-to-date basis is seen down at 7.2% (from 8% in the last survey), will be closely watched as it is a precursor to the figure that is most guiding central banks in their current monetary policy, namely inflation. If there are any upside surprises, the markets may not take it well, as the concrete possibility of a 75 bp hike by the Fed next week could return, which does not seem to be on the policymakers’ table at the moment. Similarly, an above-expected figure could signal that the notorious inflation peak has not yet been fully passed.


Meanwhile, news broke this morning that the UK is poised for the most significant regulatory reform of the financial system since the great financial crisis. To revive growth in the sector hardest hit by Brexit, the authorities are thinking of a strategy with much more liberalisation, fewer constraints and fewer rules to attract business investment again.


Elsewhere, oil continues to struggle to regain strength. Even yesterday, the market promptly cancelled any rebound attempt, despite more-than-expected inventory data falling and the Keystone pipeline outage in the US due to a breakdown.


As for the macroeconomic calendar, today, investors will focus, as mentioned, on the US PPI and Michigan consumer sentiment.




EURUSD, M15



The EURUSD continues to show a good presence of sellers in the medium-term resistance area between the 1.0587 and 1.0525 marks (the blue rectangle). The pair trades around the most significant intraday resistance area, the daily LVN. In contrast, the most crucial intraday support area is between the 1.0532 mark and the current weekly POC. From a technical point of view, as long as prices remain below the resistance, the most likely scenario is a drop toward the support. On the flip side, a breakout of the resistance could lead prices back to the 1.0587 mark and the yearly LVN in case of another upside breakout.


Main intraday support areas where to look for long trades in case of a bullish candlestick pattern or short trades in case of a bearish candlestick pattern: 1.0532-1.0513, 1,0483.


Main intraday resistances areas where to look for short trades in case of a bearish candlestick pattern or long trades in case of a bullish candlestick pattern: 1.0568, 1.0587, 1.0640.


S&P500, M30



The S&P500 trades above the most significant intraday support, the W-3 POC. In contrast, the most critical intraday resistance is the LVN around the 3989 mark. From a technical standpoint, as long as prices remain above the support, the most likely scenario is a continuation of the rise toward the LVN and the W-3 VAH in extension. On the other hand, if prices drop below the support, further drops toward lower supports (W-1 POC, W-3 VAL, W-1 VAL) are expected.


Main intraday support areas where to look for long trades in case of a bullish candlestick pattern or short trades in case of a bearish candlestick pattern: 3968, 3956, 3946, 3938-3934.


Main intraday resistances areas where to look for short trades in case of a bearish candlestick pattern or long trades in case of a bullish candlestick pattern: 3989, 4002, 4027.


Key:


POC= Point of Control

VAH= Value Area High

VAL= Value Area Low

LVN= Low Volume Node

HVN= High Volume Node

W-1= last week

W-2= two weeks ago

W-3= three weeks ago

D-1= yesterday

D-2= two days ago

D-3= three days ago


The post US OPENING BELL 09-12-2022 appeared first on Key To Markets Blog.


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