Post by: PocketOption on Sep 15, 2022, 03:06 pm
EUROPEAN EQUITIES REMAIN MARGINALLY FLAT AHEAD OF THE US OPENING BELL; INVESTORS AWAIT FOR THE KEY US MACROECONOMIC DATA DUE TO BE RELEASED.
European stock exchanges remain essentially flat at mid-session, ahead of the opening of the Wall Street exchange. Currently, the Dax is up by 0.04%, while the Cac40 and Eurostoxx give up 0.29% and 0.02%, respectively. However, the gains in Milan and Madrid are more substantial, which advance in the range of half a percentage point. This calm is probably due to the wait-and-see attitude investors are having ahead of releasing important macro data today. In particular, they will focus on Core Retail Sales, expected at 0.1% versus the previous 0.4%, initial jobless claims, expected at 226K versus the previous 222K, and retail sales, expected at 0.2% versus the previous 0.0%. These data, like all those coming in this period, will be crucial, as they will allow traders to more accurately assess and estimate what will be the next monetary policy move by the FED next week. The more positive the data, the more likely it is that the stock market will suffer and the dollar will gain, as in this case, the FED would have the way clear to continue its aggressive monetary policy.
Elsewhere, there are no particular movements to report on the currency and commodity fronts, except Natural Gas, which after +10% yesterday, is currently giving up nearly 6% today. Finally, volatility is reported to be slightly down.
As for the economic calendar, excluding the data already mentioned, it will also be necessary to follow the publication of the Philadelphia FED manufacturing index.
EURUSD, M15
The EURUSD remained above the primary support area this morning (between the current weekly VAL and the W-3 VAL) and rose towards the 0.9981 mark, surpassing it. From now on, this area becomes the first support. If prices remain above it, the most likely scenario is a continuation of the rise to target the W-2 POC and the W-3 VAH in extension. On the flip side, if prices come back below the support, a drop to retest the most significant support in the 0.9955 area is expected.
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: 0.9981, 0.9957-0.9952, 0.9914.
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: 1.0008, 1.0029.
S&P500, M30
The S&P remains under pressure as sellers control the market, at least for the time being. Currently, the index trades around the major intraday support area around the W-2 VAL. The outlook remains bearish, if prices break the support downward, a stretch to the W-1 VAL is the most likely scenario. On the other hand, until prices do not break the main resistance area (the blue rectangle in the chart) upward and consolidate above it, a notable rebound seems unlikely.
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: 3938, 3893.
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: 3976-3990, 4031.
The post US OPENING BELL 15-09-2022 appeared first on Key To Markets Blog.
Source: US OPENING BELL 15-09-2022 (https://www.keytomarkets.com/blog/analysis/us-opening-bell-15-09-2022-15425/)