Post by: PocketOption on Sep 14, 2022, 05:27 am
EUROPEAN STOCKS REMAIN BARELY MOVED AS THEY AWAIT KEY DATA ON USA INFLATION AND AHEAD OF THE OPENING OF WALL STREET.
European stocks remain little moved but above par at mid-session, awaiting the key U.S. inflation data and before the opening of U.S. markets. Currently, the Dax gains 0.61%, the Cac40 0.53% and the Eurostoxx 0.54%. Such a session was expected, with few significant movements, as most investors remain with bated breath as to whether the price level in the States continues to fall for the second consecutive month (which has not happened since June 2020). If so, the FED would have less pressure to raise the interest rate. If not, on the other hand, especially considering the good labour market data, it would be even more prone to continued sharp hikes to curb inflation. Expectations are for a monthly figure of -0.1% versus 0.0% in the previous month, while the annual figure is expected to stand at 8.1% versus 8.5%. On the other hand, the Core figure is expected to remain the same as the previous month at 0.3%.
Moreover, this morning, the German Zew index came out worse than expected. Specifically, the reading was -61.9 against the -60 expected. This level has not been seen since July 2008, at the height of the financial crisis, and signals that, in any case, the outlook on the principal European economy for the next six months is far from rosy.
Regarding the economic calendar, no other significant data will be released this afternoon except those already mentioned on the US CPI.
EURUSD, M15
The EURUSD confirmed the buying activity around the 1.0143 mark, posted the two bullish engulfing highlighted, and climbed toward the uncovered weekly POC around the 1.0186 mark. From a technical point of view, the most crucial intraday resistance area is the uncovered weekly POC. In contrast, the most significant intraday area is the 1.0143 mark. If prices can break the resistance upward and consolidate above it, the most likely scenario is a continuation of the current trend toward the LVN around the 1.0233 mark. On the other hand, if the resistance area holds prices below it, a drop to retest the support is expected. It is necessary to consider that the scenario could change completely following the US inflation figure.
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: 1.0111, 1.0143, 1.0084, 1.0046.
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: 1.0186, 1.0233.
S&P500, M30
The S&P500 continues to rise yesterday until the end of the session. Currently, it is trading above the most significant intraday support area, which is between W-3 POC (uncovered) and the W-3 VAL. From a technical point of view, as long as prices remain above the support, a stretch toward the W-3 VAH is expected. On the other hand, if prices break the support downward, a drop to the LVN is expected. Also in this case, it is necessary to consider that the scenario could change completely following the US inflation figure.
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: 4124-4108, 4063.
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: 4178.
The post US OPENING BELL 13-09-2022 appeared first on Key To Markets Blog.
Source: US OPENING BELL 13-09-2022 (https://www.keytomarkets.com/blog/analysis/us-opening-bell-13-09-2022-15342/)