Started by PocketOption, Jan 24, 2023, 07:52 am
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Major European equities returned positive ahead of the start of the US session and after a subdued start. The Dax advance by 0.06%, the Cac40 by 0.09& and the Eurostoxx by 0.24%. The only negative stock exchange remains the one in Milan, which due to the technicalities of the ex-dividend of two big stocks such as Enel and Snam, dropped 0.43%.
Investors are also beginning to perceive the imminent change in monetary policies by the two leading central banks, the Fed and the ECB, which positively affect the EURUSD exchange rate. The pair reached a nine-month high as many investors expect the ECB to remain fairly aggressive at upcoming monetary policy meetings and the Fed to move closer to the pivot.
Klass Knot’s (ECB) words over the weekend and Waller’s (FED) words last Friday seem to confirm this. The former reiterated how the bank must proceed with two more 50 bp increases in the next two meetings, while the latter confirmed that he would favour an upcoming 25 bp increase.
Elsewhere, volatility remained subdued, while US natural gas jumped about 10%.
In terms of the economic calendar, as already mentioned, the only event of note will be Lagarde’s speech in the evening.
The EURUSD setup did not change so much from this morning. However, it broke the daily VAL (blue line on the chart) on the downside and now a deeper pullback toward the W-1 VAH is more likely. The most significant intraday resistance and support areas are unchanged. As long as prices remain above the support, the most likely scenario is a continuation of the trend toward the resistance. On the flip side, a breakout of the support could lead prices toward the W-1 POC and the W-2 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: 1.0859, 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 S&P500 found sellers around one of the most significant intraday resistance areas, around the 3978 mark (the blue rectangle on the chart). On the downside, the most crucial intraday support is the W-2 POC. From a technical point of view, the bullish setup could continue if prices overcome the resistance. The realistic price target could be the 4000 psychological level in this case. On the other hand, as long as prices remain below the resistance, a drop toward the support is the most likely scenario.
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: 3947, 3924, 3860.
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: 3978, 3999-4003, 4018, 4037.
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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