THE LONDON OPENING 13-09-2022

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THE LONDON OPENING 13-09-2022

EUROPEAN STOCKS OPENED SLIGHTLY ABOVE PARITY AFTER A POSITIVE ASIAN SESSION AND AHEAD OF SIGNIFICANT MACROECONOMIC DATA.

European stocks opened this Tuesday slightly above parity after a positive Asian session, where the China A50 index gained 1.06%, the ASX200 0.65% and the Nikkei 0.27 %. After yesterday’s good performance, mainly due to the incoming news from the war between  and e, stock markets will probably be holding their breath today as they await the various macro data coming in. The most important is the one on US inflation, as this data may confirm or deny analysts’ forecasts about the next rate hike by the FED, which will meet next week. In this sense, on the European side, German inflation data came out this morning, which confirmed expectations, reiterating how especially in Europe, the inflation issue is still far from being resolved. In the UK, on the other hand, unemployment hit its lowest level since 1974 at 3.6%, and average wages, including bonuses, rose 5.5% against the expected 5.4%.

On the currency market, the Euro and the JPY maintain part of yesterday’s gains against the Dollar. WTI continues its recovery on the commodities front and regains $88 a barrel; gold and silver remain stable, as do the major cryptocurrencies.

As for the macroeconomic calendar, investors will focus today on the German ZEW index and speeches by other ECB exponents and BoE Governor Bailey, in addition to US inflation data.

EURUSD, M15

The EURUSD trades slightly below the most important intraday resistance area, around the 1.0143 mark. Yesterday in that area we saw a good buying activity, that needs to be confirmed today. From a technical point of view, as long as prices remain below the resistance area, the most likely scenario is a drop toward the LVN and the W-2 VAH in extension. On the other hand, if prices break the 1.043 mark upward and consolidated above it, a stretch to retest the uncovered weekly POC 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: 1.0111, 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: 1.0143, 1.0186.

WTI, M15

The WTI is trying to hold the recent gains and is now in a sideways trend between two strong resistance/support areas. From a technical point of view, the most critical resistance area is between the W-2 POC and W-1 VAH. In contrast, the most significant support area is between the W-1 POC and the W-2 VAL. As prices remain below the resistance area, a drop toward the support is expected. On the other hand, if prices break the resistance upward, a stretch to the 90$ mark becomes the most likely scenario. If prices break the support downward, a more significant drop is expected towards the W-1 VAL, with intermediate support around the 83.84 mark.

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: 86.34-85.85, 83.84, 82.52.

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: 87.55-88.04, 90.

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