Post by: PocketOption on Sep 11, 2022, 08:13 am
EUROPEAN EQUITIES OPENED HIGHER AFTER A POSITIVE ASIAN SESSION; THE ECB CONFIRMED THE JUMBO-SIZED RATES HIKE WHILE THE USD RETRACED FROM RECENT HEIGHTS.
European stocks began the utmost trading day of the week in the positive following an equally positive Asian session, where all major indexes closed above parity. In particular, the ChinaA50 index gained 1.77 %, the ASX200 0.66% and the Nikkei 0.53%. In the morning came China’s inflation data, which came in lower than expected, with the annual figure coming in at 2.5% versus 2.8% expected and the monthly figure at -0.1 % versus 0.1% expected.
Yesterday’s key event, the ECB meeting, ended with a rate hike of 75 bp. The ECB had never accomplished a hike of this magnitude in all its history. In her post-announcement press conference, Lagarde also left the door open for a further hike of the same magnitude at the next meeting. Likewise, Powell, in his speech, maintained and reiterated hawkish tones, with the market currently pricing an 84% chance that the Fed will also follow the ECB in a hike of the same amount at its next meeting on Sept. 21. Meanwhile, European energy ministers will meet today to try to find a solution to the continental energy crisis, and on the table for discussion will be the imposition of a price cap on imports from .
As for the macroeconomic calendar, no significant data are expected today, except Canadian employment data and some speeches by members of the Fed.
EURUSD, M15
The EURUSD rose strongly after the ECB announcement. Currently, prices are fighting just below the most important intraday resistance level, the LVN around the 1.0084 mark. On the downside, the most significant intraday support is the 0.9979 mark (W-2 POC & W-1 VAL & Current weekly VAH). From a technical point of view, as long as prices remain below the resistance area, a drop to the lower support, meaning the W-1 VAH and the W-2 VAH towards the W-1 POC, is expected. On the other hand, if prices break the LVN upward, another stretch to the W-3 VAL becomes the most likely scenario.
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: 1.0046, 1.0028, 1.0008, 0.9979.
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: 1.0084, 1.0122.
WTI, M15
The WTI is currently trading above the weekly POC, which can be considered a positive bias for today. From a technical point of view, the most critical intraday resistance area is the LVN around the 84.06 mark. In contrast, the most significant support is the current weekly POC. As long as prices remain above the support, a continuation of the short-term uptrend is expected. If prices break the LVN upward, a stretch to the W-1 VAL could be possible. On the other hand, if prices break the support downward, a new drop toward the current weekly VAL becomes the most likely scenario.
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: 83.02, 81.02, 80.65.
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: 84.06, 85.85-86.10.
The post THE LONDON OPENING 09-09-2022 appeared first on Key To Markets Blog.
Source: THE LONDON OPENING 09-09-2022 (https://www.keytomarkets.com/blog/analysis/the-london-opening-09-09-2022-15189/)