Started by PocketOption, Sep 24, 2022, 05:10 am
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European shares were deep in the red at mid-session pending the opening of Wall Street, with the Dax dropping 2.70 %, the Cac40 2.42 % and the Eurostoxx 2.69 %. Contributing to this slump was undoubtedly the PMI data released this morning in the Eurozone, which largely disappointed expectations. In particular, the European manufacturing PMI came in at 48.5 against the 48.7 expected. The German and UK data also fell short of expectations, except for the UK manufacturing PMI, which came in one point above expectations at 48.5. All of these values, well below the 50 threshold that separates economic contraction from expansion, signal that the situation in Europe is far from rosy and that recession is just around the corner.
As for the markets’ reactions, it was very negative, with all major assets falling. Oil dropped to its lowest level since January this year, and even the major cryptos retraced and lost much of the gains they had accumulated between yesterday and this morning. Gold also marked a new low since April 2020, below 1650. The only asset that continues to benefit from this situation remains the dollar, which marked a new multi-year high, with the dollar index touching 112.35.
As for the economic calendar, investors’ focus today, especially after this data from the Eurozone, will be on US PMI data and Powell’s speech expected in the evening.
The EURUSD fell sharply after the European PMI data were released, breaking the primary intraday support (the 0.9807 mark) downward. The trend remains bearish. From a technical point of view, prices formed a weak resistance around the daily LVN, and as long as prices remain below the current weekly POC, the most likely scenario is a continuation of the drop toward the 0.9700 mark. Conversely, if prices retrieve the daily LVN, a rebound to retest the 0.9807 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: 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: 0.9770, 0.9807, 0.9840.
The S&P followed the European market collapse before the opening bell and is still trading below the current weekly VAL, which can be considered a negative bias for today. From a technical point of view, prices formed a resistance area around the weekly LVN, which is the most significant one from an intraday standpoint. As long as prices remain below the resistance area, a continuation of the drop is expected, to target the last considerable low of the index around the 3622 mark. On the flip side, investors can expect a notable rebound only if the index can retrieve the weekly LVN. In that case, prices could retest the current weekly VAL.
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: 3622.
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: 3717, 3746, 3794-3805.
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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