Started by PocketOption, Jan 24, 2023, 07:52 am
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Most European indices opened slightly lower this Monday. Still, movements remain subdued for the time being, partly due to the absence of most trading in the Asian market, where many exchanges remained closed to celebrate the Chinese New Year.
Investors, on a day that is not very busy from an economic calendar standpoint, are looking for a definitive direction to take amid continued concerns of a possible recession ahead and hopes for a more dovish Fed at the next monetary policy meeting. In this regard, some interesting insights could come from Lagarde’s speech scheduled for this evening (ECB), but above all, from the US GDP figure to be released on Thursday.
Another decisive factor this week will be the earnings released by American biggies, including Microsoft, Tesla, Visa, etc., from which we will continue to understand how effectively this period of crisis is eroding corporate margins and thus impacting the real economy.
Elsewhere, the crypto market seems to have put the most challenging period following the FTX collapse behind it, and the two leading cryptocurrencies, BTC and ETH, remain close to their period highs at USDT 23000 and USDT 1600, respectively. Staying on the more traditional markets instead, the US dollar seems ready for a new plunge below the recent lows near 101 (dollar index). At the same time, the WTI continues its run even if it now has to face the first real significant resistance near 81 dollars per barrel.
As far as the macroeconomic calendar is concerned, no critical data will be reported today, and the only thing to follow will be, as already mentioned, Lagarde’s speech.
The EURUSD broke the last significant resistance area (around the 1.0866 mark) and stretched to the upside. As for today, the most crucial intraday support area is the W-1 VAH. In contrast, the most critical intraday resistance area is the yearly LVN around the 1.0945 mark. From a technical point of view, the most likely scenario is a continuation of the rise toward resistance. On the other hand, we should probably wait until prices drop below the 1.0822-1.0830 area to assist in a short-term trend change.
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: 1.0859, 1.0820-1.0830.
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: 1.0945.
The Cable is trading between the most significant intraday support and resistance. The first is the LVN around the 1.2397 mark, while the latter is the area between the W-1 WAH and the yearly LVN around the 1.2433 mark. From a technical point of view, as long as the pair remains below the resistance, a drop to the support is the most likely scenario. On the flip side, a breakout of the resistance could lead prices toward the yearly HVN in the medium term.
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: 1.2397, 1.2340.
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: 1.2433, 1.2437, 1.2524.
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 23-01-2023 appeared first on Key To Markets Blog.
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