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Forex news -forex broker review => Forex => Topic started by: PocketOption on Feb 22, 2023, 04:21 am

Title: THE LONDON OPEN 20-02-2022
Post by: PocketOption on Feb 22, 2023, 04:21 am
THE LONDON OPEN 20-02-2022

EUROPEAN STOCKS OPENED MAINLY FLAT AFTER A MIXED ASIAN SESSION; US STOCKS WILL REMAIN CLOSED DUE TO WASHINGTON’S BIRTHDAY HOLIDAY; INVESTORS FOCUS SHIFT NOW ON KEY ECONOMIC DATA TO BE RELEASED THIS WEEK.


Most European indices opened relatively flat and without a defined direction this week after a mixed Asian session, where the ChinaA50 index gained 1.94%, the ASX200 0.06% and the Nikkey 0.07%. Negative, however, was the New Zealand and Indian stock markets.


The day is shaping to be quiet, as today’s markets will be only marginally impacted by trading by US investors, who are observing a one-day stock market shutdown today to celebrate Washington’s birthday.


That said, another factor that leads us to think the day could be pretty flat is the macro data that investors are waiting for and that will be released tomorrow through Friday. The data to be released will be critical, and traders will try, as always in recent months, to interpret them from a monetary policy perspective to see how far the major central banks can go in their monetary tightening before reaching the famous pivot.


Tomorrow we will have the European PMIs; on Wednesday, the FOMC meeting minutes; on Thursday, the European inflation and the US GDP. On Friday, the US PCE data, which is the FED’s favourite to understand the trend and development of inflation.


Elsewhere, WTI is trying to recover from recent losses, although, for a good recovery, it must necessarily overcome what has now become the primary resistance at around $77.80/barrel. Finally, positivity continues in the crypto market, with BTC and ETH remaining stable at period highs around 25000 and 1700, respectively.


As for the macroeconomic calendar, no significant data are expected today.




EURUSD, M15



The EURUSD trades close to the most significant intraday resistance area, the W-2 VAL. In contrast, the most significant intraday support area is between the W-1 POC and the W-1 VAL. From a technical point of view, as long as prices remain below the resistance, the most likely scenario is a continuation of the short-term trend on the pair to target the support. If the pair breaks the support downward, they could approach the D-1 VAL around the 1.0630 mark. On the flip side, a breakout of the resistance and a consolidation above it could lead prices to upper resistances between the W-2 POC and the W-1 VAH.


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: 1.0682-1.0667, 1.0630.


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: 1.0734-1.0746, 1.0777.


WTI, M15



The WTI is trying to recover recent losses and is trading close to the most significant intraday resistance area, the W-1 VAL. In contrast, the most significant intraday support area is the W-3 VAL. From a technical point of view, as long as prices remain below the resistance, the most likely scenario is a continuation of the drop to retest the support. On the other hand, a breakout of the resistance could lead prices toward the W-2 POC first, then the 78.00 mark.


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: 76.22, 75.35.


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: 77.36, 77.68, 78, 78.96.


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 THE LONDON OPEN 20-02-2022 appeared first on Key To Markets Blog.


Source: THE LONDON OPEN 20-02-2022 (https://www.keytomarkets.com/blog/analysis/the-london-open-20-02-2022-20211/)