Started by PocketOption, Jan 31, 2023, 10:32 am
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Most European stock exchanges started the week on a negative note, opening below parity, following the mixed performance of Asian exchanges overnight. While the Chinese stock exchanges opened positively after the long festivity due to the Chinese New Year, the same cannot be said for other indices on the continent. The ASX200 dropped 0.16%, the Hang Seng lost 2.54%, and the Nifty50 lost 0.65%.
Investor sentiment continues to be positive. This is mainly due to the lower-than-expected US PCE data that arrived last Friday, signalling that inflation is still falling and confirming an upcoming rate hike by the Fed of 25 bps. However, what prevails in the market at the start of this week seems to be cautious, with most traders wanting to wait for the FED, ECB and BOE post-rate announcement press conferences to get more clarity on the three major central banks’ next monetary policy steps will be. While the amount of the rate hike is pretty obvious (25bp for the Fed, 50bp for the ECB and BOE), less so are the possible surprises that might emerge from the words of the various Presidents and Governors. Attention must be paid because this could be the week in which we will again see a divergence between the monetary policies of the major central banks.
Elsewhere, WTI oil continues to fall after Friday’s sell-off and is trading below USD 80 per barrel again in anticipation of Wednesday’s OPEC+ meeting. However, the market does not expect any change in production.
As for the macroeconomic calendar, no critical data will be released today except for the German GDP and sentiment indicators for the Eurozone.
The EURUSD is trading within an area full of critical resistance and support levels. The most significant intraday resistance area is between the W-1 POC and the W-1 VAH. In contrast, the most important support is the W-2 POC. From a technical point of view, as long as prices remain above the resistance, the most likely scenario is a continuation of the rise toward the W-1 VAH and eventually to the yearly LVN. On the flip side, a downward breakout of the W-1 VAL could lead prices back to the W-2 POC.
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: 1.0836, 1.0828, 1.0812.
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: 1.0860, 1.0865, 1.0872.
The WTI continues to fall and trades below the most important intraday resistance area, between the W-2 VAL and the W-1 VAL. In contrast, the LVN is the most significant intraday support, around the 77.84 mark. From a technical standpoint, as long as prices remain below the resistance, the most likely scenario is a continuation of the drop toward the support. On the other hand, black gold should retrieve the resistance to invert the short-term trend.
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: 78.26, 77.84.
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: 79.77, 79.96, 80.58.
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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