US OPENING BELL 09-09-2022

[PocketOption]

US OPENING BELL 09-09-2022

EUROPEAN STOCKS ARE LARGELY HIGHER AHEAD OF THE US SESSION WHILE THE USD TRADES AROUND THE 10-DAYS LOW; THE MAIN CRYPROS SURGE, AS DO THE WTI AND GOLD.

European stocks continue to trade in the positive this Friday before the opening of the US stock market, which is also expected to rise. At mid-session, the Dax advanced 1.47 %, the Cac40 1.70 % and the Eurostoxx 1.82 %. The market is anxiously awaiting the results of the European Summit, where ministers from various countries will discuss the measures to address the European energy crisis. The possibility of imposing a ceiling on the price of imports from  remains on the table. Should member countries fail to develop effective solutions, there is a serious risk that supplies will have to be rationed during this winter, with obvious consequences for households and businesses. In such a scenario, it seems impossible to avert a severe recession in the Eurozone. In the United Kingdom, new Prime Minister Liz Truss has already announced that she will impose an annual cap on consumer spending, financed by creating a £150 million debt.

Elsewhere, the US dollar is temporarily taking a hit after the ECB’s interest rate announcement yesterday and is currently trading at ten-day lows (dollar index in the 108.36 area); By contrast, the major cryptos are jumping, with BTC and ETH gaining 9. 5% and 3.37%, respectively; Good performance also for WTI, which advances by 1.94% and is back above $85 a barrel, and for Gold, which is about to close the week in the positive after the last three in which it has scored more than 6% overall.

As for the macroeconomic calendar, as mentioned earlier, no significant data is expected to be released today, except for Canadian employment data and some important speeches by FED members.

EURUSD, M15

The EURUSD made a fake breakout of the resistance area this morning and after that it started to drop, reaching the first support around the W-1 VAH. Currently, it is trading slightly above the support. From a technical point of view, as long as prices manage to hold this support, a stretch to the W-3 VAH is still possible. On the other hand, if prices lose the W-1 VAH, a continuation of the drop towards the current weekly VAH is expected (with intermediate support around the W-2 VAH and the W-1 POC).

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: 1.0046, 1.0028, 1.0008, 0.9988-0.9979.

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: 1.0084, 1.0122.

GBPUSD, M15

The GBPUSD followed more or less the same EURUSD setup due to the high correlation between the two assets. At the moment, it is trading on the edge of the W-1 POC, which is the most important intraday support. From a technical point of view, as long as prices remain above the support, the most likely scenario is a continuation of the rise to the LVN and the W-1 VAH in extension. On the other hand, if prices break the support downward, another drop toward the current weekly POC is expected.

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: 1.1552, 1.1524, 1.1500.

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: 1.1604, 1.1673.

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

Source: US OPENING BELL 09-09-2022