Post by: PocketOption on Feb 22, 2023, 04:21 am
EUROPEAN EQUITIES REMAIN MAINLY UNMOVED DUE TO US HOLIDAY; THE US DOLLAR RETRACED FROM RECENT HIGHS AS INVESTORS STARTED TO LOOK AT THE FOMC MINUTES AND KEY MACRO DATA; PRESIDENT BIDEN MADE A SURPRISE VISIT TO KYIV JUST DAYS BEFORE ONE-YEAR ANNIVERSARY OF THE E WAR.
Most European indices trade directionless this Monday, mainly due to the absence of US traders observing a holiday today for Washington’s birthday. The Dax is advancing 0.04% and the Eurostoxx 0.03%, while the Cac40 edged up 0.10%.
Some noteworthy movements might still come in the afternoon, but this movement will be restrained with the US stock market closed.
In the morning came news of Biden’s surprise and unannounced visit to Kiev on the anniversary of the start of the n war in e, in which the President wanted to reiterate his support for the country. During the visit, he also announced other military and non-military aid packages and additional sanctions for n elites and companies trying to supply the n war machine.
Barring any major surprises, the market week will begin tomorrow with the release of European PMI data. Investors’ market positioning will depend on this and other data arriving during the week after assessing the impact of this data on the next moves by the FED and ECB.
Meanwhile, the dollar retraced from Friday’s highs in the 104.60 area (dollar index) and now trades around 103.90. At the same time, WTI remains firm at this morning’s prices, despite the recent production cuts by and OPEC+, as well as analysts’ estimates of Chinese oil imports expected to reach a record high in 2023.
As far as the macroeconomic calendar is concerned, no significant data is expected today.
EURUSD, M15
The EURUSD failed to overcome the most significant intraday resistance (W-2 VAL) and dropped to the daily intraday support area between the W-1 POC and the W-1 VAL. As for the rest of the day, if prices hold the support, the most likely scenario is a pullback to retest the resistance. Conversely, a breakout of the support could lead prices toward the D-1 VAL around the 1.0630 mark.
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: 1.0682-1.0667, 1.0630.
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: 1.0704, 1.0734, 1.0746.
S&P500, M30
The S&P500 is trading below the most significant intraday resistance area, between the W-2 VAL and the W-1 VAL. In contrast, the most crucial intraday support is the W-3 VAL. From a technical standpoint, if prices remain below the resistance, the most likely scenario is a continuation to retest the support. On the other hand, a breakout of the resistance could lead prices toward the upper resistance between the W-1 POC and 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: 4058, 4040, 4007.
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: 4093-4097, 4114-4121.
Key:
POC= Point of Control
VAH= Value Area High
VAL= Value Area Low
LVN= Low Volume Node
HVN= High Volume Node
W-1= last week
W-2= two weeks ago
W-3= three weeks ago
D-1= yesterday
D-2= two days ago
D-3= three days ago
The post US OPENING BELL 20-02-2023 appeared first on Key To Markets Blog.
Source: US OPENING BELL 20-02-2023 (https://www.keytomarkets.com/blog/analysis/us-opening-bell-20-02-2023-20250/)