forex.pm forex forum binary options trade - US OPENING BELL 29-11-2022

EUROPEAN EQUITIES TRY TO REMAIN POSITIVE AHEAD OF THE US SESSION, HOPING FOR AN EASING OF THE STRICT COVID MEASURES IN CHINA; THE USD AND THE WTI RECOVERED PARTIALLY, WHILE THE CRYPTO MARKET REMAINS AT THE LOWEST LEVEL IN 2 YEARS.

Major European equities struggled on the brink of parity this morning, with the Dax index gaining 0.15%, the Cac40 0.26% and the Eurostoxx 0.22%. Slightly negative instead are the stock markets of Milan and Madrid.

Incoming news from China remained the focus of attention today, with Asian indices performing well overnight on fresh rumours of a possible easing of covid measures in China to deal with growing protests across the country. Experts, in any case, believe that the Chinese authorities are unlikely to relax the anti-Covid measures (or at least significantly) right away. Otherwise, the virus could spread across the country in an unprecedented way. This is why it is necessary to follow developments closely, as market movements, as we have seen, for example, on WTI, can also be violent and sudden.

It is precisely WTI and the US dollar that are among the instruments most affected by this aspect: the former touched a low yesterday near 73.50 dollars a barrel before recovering (it currently trades at 79), while the latter, after bouncing off the 200-day moving average, has posted a recovery of about one percentage point.

On the other hand, the problematic momentum in the cryptocurrency market continues, with BTC remaining close to two-year lows (as well as many other cryptos) following the declaration of bankruptcy of other exchanges linked to the FTX case.

As for the macroeconomic calendar, today, investors will focus on German inflation, Canadian GDP and CB consumer confidence in the States. Another interesting event will be BOE Governor Bayley’s speech.

EURUSD, M15

The EURUSD found buyers around the support area between the W-2 POC and the W-2 VAL. However, it also found sellers around the resistance the LVN gave around the 1.0387 mark. As for today, these are the most significant intraday support and resistance areas. If prices break the support downward, the most likely scenario is a drop toward the W-1 VAL. On the upside, the setup is not so straightforward, mainly because there are two higher resistances (the 1.0404 mark and the W-1 VAH) close to the main one (the LVN). Prices could try to stretch up to the W-1 VAH if they break the LVN and then turn again to the downside. A stretch toward yesterday’s heights is expected if prices can consolidate above 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: 1.0336-1.0325, 1.0275.

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: 1.0387, 1.0404, 1.0429, 1.05.

S&P500, M30

The S&P500 is trading above the most significant intraday resistance, the W-2 POC. In contrast, the most critical intraday resistance is the W-2 VAH (with another weaker resistance around the 3985 mark). From a technical point of view, as long as prices remain above the support, the most likely scenario is a stretch toward the resistance. On the flip side, a breakout of the support could lead prices to the W-2 VAL.

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: 3964, 3943.

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: 3985, 3999, 4027.

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

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