Started by PocketOption, Sep 24, 2022, 05:10 am
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European equities remain in negative territory at mid-session and before the opening of Wall Street, with the Dax currently down 0.76%, the Cac40 0.71% and the Eurostoxx 0.75%. However, all indices are trying to recover from this morning’s opening, although the US stock market will probably give the definitive direction. As mentioned in this morning’s analysis, the news of the day is the Fed’s third consecutive 75bp rise at last night’s meeting. Policymakers now see the money supply in the 4.25 %-4.50 % range by the end of the year, and even some are pushing close to 5 % in the first part of 2023, at least according to the famous dot plot. In the morning also came the SNB’s decision to raise interest rates by 75bp, followed by the BoE’s simultaneous 50bp hike. The British central bank explained that uncertainty regarding retail energy costs has decreased due to the support plans, and this should have a negative impact on inflation; however, a thorough investigation into the effects of these measures on supply and demand will be carried out to see how best to proceed from a monetary policy perspective. After the SNB’s move, Japan thus remains the only major country with negative rates. This asymmetry with other central banks, as we know, has brought intense pressure on the JPY, which is why the BoJ has intervened in the exchange rate to support the national currency for the first time since 1998.
The most interesting movement was the USDJPY exchange rate, which has now lost over 3.5% after peaking.
As for the macroeconomic calendar, the release of initial claims for US initial jobless claims and European consumer confidence is expected this afternoon.
The EURUSD started to retrace this morning as it found buyers around the 0.9820 mark, as indicated in this morning’s analysis. It then rose to the main intraday resistance area between the W-2 VAL and the current weekly VAL. The most crucial resistance, however, is the one highlighted in the chart by the blue rectangle. If prices can break upward, prices could reach the 0.9960 mark due to the volumetric gaps between the two zones. On the flip side, as long as prices remain below the most significant resistance area, a continuation of the drop toward the primary support remains the most likely scenario.
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, 0.9700.
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: 0.9880, 0.9900-0.9913, 0.9960.
The S&P500 is trading below the current weekly VAL, which can be considered a negative bias for today. From a technical point of view, the most significant intraday resistance area is between the D-1 VAL and the current weekly VAL. As long as prices remain below that area (especially below the 3805 mark) the most likely scenario is a continuation of the drop to target the LVN around the 3717 mark. On the other hand, if prices break the resistance upward, a stretch toward the W-1 VAL 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: 3717.
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: 3805, 3833-3843, 3887.
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
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