Started by PocketOption, Sep 24, 2022, 05:10 am
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European stock exchanges this morning opened lower, following a negative Asian session, which only continued Wall Street’s performance after the FED’s interest rate announcement. The ChinaA50 index lost 0.94 % and the Nikkei 0.58%, while the ASX200 closed at parity. It will therefore be necessary to see in today’s trading day how the markets will react to the FED’s decision. The central bank raised rates by 75 bp marking the third consecutive increase of that amount and pushing borrowing costs to the highest since 2008. Again, Powell reiterated how the fight against inflation must be conducted without hesitation. “We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t”. These are the words Powell used during the conference. As a result, US indices gave up an average of 1.70%, and the dollar, also helped by new geopolitical tensions regarding the -e conflict, set new all-time highs. The dollar index is at a new high near 112. Also in the morning came the BoJ’s interest rate decision, which confirmed expectations by keeping rates unchanged and specifying how the central bank closely monitors the JPY’s trend.
In particular, on the currency front, the USDJPY touched a new high above 145 (what appears to be the threshold within which the central bank seemed to want to intervene, though not officially). At the same time, the USDCNY traded very close to the 7.1 threshold. The strengthening of the dollar also weighed on major commodities and cryptos.
As for the macroeconomic calendar, today, investors will be focused on the SNB and BoE meetings and data regarding initial jobless claims in the US.
The EURUSD dropped heavily after the FED meeting and is now trading below the current weekly VA, which can be considered a negative bias for today. Currently, the pair seem to have found some buyers around the 0.9820 mark. This can be considered weak intraday support. As long as prices remain above the support, the most likely scenario is a pullback to retest the D-1 VAL and the W-2 VAL in extension. On the flip side, if prices break the support, they could target the 0.9700 mark in the medium term.
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: 0.9820, 0.97.
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: 0.9862, 0.9883.
The GBPUSD followed the same EURUSD pattern. At the moment it is fighting to hold the main intraday support, around the 1.1221 mark. From a technical point of view, as long as prices remain above the support, a pullback to retest the current weekly VAL and the current weekly POC is expected. On the other hand, if prices break the support downward, the following notable support is around 1.0700, to be reached in the medium term. In this case then, due to the fact that the following support is far below the current price, it will be necessary to wait until new support below the 1.1221 mark will be created.
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: 1.1221, 1.07, 1.05.
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: 1.1310, 1.1338, 1.1397.
POC= Point of ControlVAH= Value Area HighVAL= Value Area LowLVN= Low Volume NodeHVN= High Volume NodeW-1= last weekW-2= two weeks agoW-3= three weeks agoD-1= yesterdayD-2= two days agoD-3= three days ago
The post THE LONDON OPEN 22-09-2022 appeared first on Key To Markets Blog.
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