US OPENING BELL 06-09-2022

[PocketOption]

US OPENING BELL 06-09-2022

EUROPEAN EQUITIES REMAIN MAINLY POSITIVE AHEAD OF THE US OPENING BELL; THE WTI ERASED ALL THIS MORNING’S GAINS WHILE THE DOLLAR IS SET FOR A NEW HIGH.

The major European indexes continue to trade above parity after the early part of the session and ahead of the opening of Wall Street, which is also expected to rise slightly. Currently, the Dax gains 0.84%, the Cac40 0.51% and the Eurostoxx 0.37%. It will be interesting to follow the progress of U.S. trading this afternoon, as it will become clear how traders (who stayed away from the market yesterday due to the Labor Day holiday) will react to the news that came over the weekend and yesterday. Certainly, today will serve traders as a test case for Thursday, in which the ECB will meet, and Powell will also speak in addition to several other FED officials. As always, investors will look for clues on the next moves by central banks, which will have strong repercussions on global markets.

Meanwhile, WTI oil has reversed all of this morning’s gains. In this case, it seems that the market wants to continue downward despite the (slight) production cut implemented by OPEC+. Nothing special to report instead as far as the FX market is concerned, except that the Dollar manages to firmly hold on to the gains of the last few days and instead seems poised to set a new multi-decade high.

Regarding the economic calendar, this morning, the Construction PMI in Great Britain came in at 49.2 versus the 48 expected, but it remains below the critical 50 threshold. However, this figure reversed a downward trend that had lasted since March of this year. Today investors will focus on the U.S. ISM Non-Manufacturing PMI, perhaps the only real market mover of the day.

EURUSD, M15

The EURUSD failed to break the most significant resistance area this morning (W-2 POC & W-1 VAL) and then dropped to the most crucial support around the W-2 VAL and the 0.9936 mark. As soon as it reached the support, it posted a beautiful continuation candlestick pattern, breaking the area downward. Currently, the pair is trading below the support (now resistance). If prices cannot retrieve that area, a continuation to target the 0.9877 mark is expected. On the other hand, to reverse the setup and start to rise, the EURUSD has probably to overcome at least the main resistance area, in which case it could move upward to the W-1 POC and W-2 VAH.

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: 0.9877, 0.9834.

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: 0.9936-0.9945, 0.9975, 1.0002.

S&P500, M30

The S&P500 is trading below the main intraday resistance area, the W-1 VAL. From a technical point of view, as long as the index remains below the 3955 mark, and especially if it breaks the LVN downward, a drop to the 3880 area is expected. On the other hand, if prices can overcome and consolidate above the resistance area, a stretch to the W-1 POC becomes the most likely scenario. If prices can also break the W-1 POC, it could find new strength and climb over the W-1 VAH.

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: 3942, 3880.

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: 3955, 3982, 4048.

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