US OPENING BELL 08-09-2022

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US OPENING BELL 08-09-2022

EUROPEAN STOCKS REMAIN MIXED AHEAD OF THE KEY ECB MEETING AND THE US OPENING BELL; THE USD RETRACED SLIGHTLY WHILE THE WTI SEEMS UNABLE TO RECOVER.

Major European indexes remain mixed mid-session and before the Wall Street opening bell as they await the ECB interest rate decision and Lagarde’s subsequent words. Currently, the Dax is giving up 0.22%, while the Cac40 gains 0.36 % and the Eurostoxx 0.13 %. Also negative are the Milan and Madrid stock exchanges. Most investors are anxiously awaiting the ECB decision and Lagarde’s words. The first thing they will pay attention to will be the amount of the rate increase to see how aggressive the central bank wants to be in its fight against inflation. They will also follow the post-announcement press conference to interpret the forward guidance best.

In the meantime, the dollar trades at intraday lows, with the dollar index around 109.50. At the same time, WTI seems, for the time being, unable to recover from yesterday’s heavy losses after reports from the American Petroleum Institute that showed higher-than-expected inventories, posing further doubts on the demand side; in this sense, official data on crude stockpiles to be released today will help clarify the situation.

As for the macroeconomic calendar, this afternoon, it will be important to follow Powell’s words, US initial jobless claims, and crude oil inventories in addition to the ECB meeting.

EURUSD, M15

The EURUSD pulled back to the primary support this morning, and from there it started to rise again, breaking the main resistance area upward. From a technical point of view, the setup could change entirely during the ECB meeting, which will bring a lot of volatility to the market. At the moment, the most crucial intraday support remains the W-2 POC & W-1 VAL, while the most significant resistance area becomes the W-1 VAH. If prices remain above the support, they could stretch to the W-1 VAH and eventually to the LVN around the 1.0076 mark. On the other hand, if prices break the support downward, a deeper pullback toward the current week’s Value 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: 1.0002, 0.9975, 0.9945, 0.9908.

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: 1.0023, 1.0040, 1.0076.

S&P500, M30

The S&P500 rose strongly yesterday after breaking the old resistance area (now support) between the current weekly POC and VAL. Currently, it is fighting to overcome the W-1 POC resistance area. From a technical point of view, especially if prices can break the LVN around the 4001 mark, a stretch to the W-1 VAH is expected. On the other hand, if prices come back below the main intraday support, meaning the area between the W-1 VAL and the current weekly VAH, a deeper pullback to the current weekly POC 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: 3955-3945, 3909-3900, 3857.

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: 3982, 4001, 4048.

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