US OPENING BELL 20-10-2022

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US OPENING BELL 20-10-2022

EUROPEAN EQUITIES TRY TO STAY POSITIVE AHEAD OF THE US OPENING BELL; THE USDJPY TOUCHED THE 150 MARK AS WORLDWIDE BONDS YIELDS CONTINUE TO SURGE.

The leading European indices struggled to stay above parity in the middle of a session characterised by a low immediately at the start of trading. Currently, the Dax is the only European index down 0.32%, while the others are all in positive territory, if only slightly. Futures in the States also indicate a slightly upward opening for Wall Street. Sentiment remains very precarious, with the dollar continuing to gain (as are bond yields worldwide), political uncertainty in the UK not seen in years, and fears of a global recession still around the corner. Add to this the quarterly figures Tesla reported yesterday, especially the news that the company is unlikely to meet its delivery target for this year. In the evening, it will also be interesting to follow the speeches of the FOMC and FED members to see whether they will continue to reiterate the hawkish attitude they have had (in a very united fashion) up to now.

Elsewhere, WTI is trying to recover from recent losses, and after yesterday’s good performance (+3%), it is now up another +2.28% on the back of yesterday’s surprisingly low crude stockpile result.

As for the economic calendar, today’s most important data will come from the States and will be initial claims for unemployment benefits, the Philadelphia Fed’s manufacturing index and existing home sales.

EURUSD, M15

The EURUSD was able this morning to remain above the main intraday support area around the 0.9780 mark and stretched from there to the W-2 POC as expected. At the moment, sellers are trying to push the price lower. Still, buyers seem to dominate the market above the support area. From a technical point of view, the most likely scenario is a continuation of the rise to target the 0.9856 mark (especially if the pair can consolidate above the resistance). On the flip side, if prices drop again below the resistance area, a retest of the support is expected.

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: 0.9808, 0.9780, 0.9753, 0.9707.

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: 0.9820, 0.9856, 0.9904.

S&P500, M30

The S&P500 is trading around the most significant intraday support area, between the W-3 VAH and the W-2 VAL. In contrast, the most crucial resistance area is the W-2 POC. From a technical point of view, as long as prices remain above the support and do not consolidate below yesterday’s low, the most likely scenario is a stretch toward the resistance. On the other hand, if prices drop below yesterday’s low, a drop to the 3644 mark is expected.

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: 3690-3679, 3644, 3589.

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: 3771.

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

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