THE LONDON OPENING 07-09-2022

[PocketOption]

THE LONDON OPENING 07-09-2022

EUROPEAN STOCKS OPENED LOWER AFTER A NEGATIVE ASIAN SESSION; INVESTORS’ EYES ARE ON BOE AND BOC, AND SEVERAL DATA TO BE RELEASED TODAY AHEAD OF TOMORROW’S ECB MEETING.

European stocks start this Wednesday down, following the negative Asian session, where the ChinaA50 index lost 0.48 %, the ASX200 1.42% and the Nikkei 0.70%. Investors remain concerned about the global economic slowdown and continued inflationary pressures that central banks must address head-on while at the same time trying to avoid as much of a recession as possible. However, the macroeconomic data that continue to arrive daily suggest how difficult this task may be. In the morning, the Australian GDP (QoQ) (Q2) figure was lower than expected (0.9% vs 1%), while China’s trade balance declined in both imports and imports, thus reducing the surplus to 79.39B vs 92.70B expected, due principally to the continued lockdowns implemented by the Chinese government in various areas of the country. In Germany, the industrial production (MoM) figure was -0.3% against an expected -0.5%, but still down from the previous 0.8%.

Today, traders will mainly focus on the European GDP and employment data, as they will lead the way for tomorrow’s ECB monetary policy meeting, from which a further substantial interest rate hike is expected.

Regarding the macroeconomic calendar, BoE Governor Bailey’s speech is scheduled for today and the release of US and Canadian trade balance data. In addition, the BoC monetary policy meeting is expected in the afternoon.

EURUSD, M15

EURUSD confirmed the support break after posting the continuation pattern mentioned above and continued the downtrend to lower support around the 0.9877 level. Currently, the most significant intraday support area is the 09877 level. As long as prices remain above this area, the most likely scenario is a rise toward the current weekly POC and VAH. On the downside, if prices break the primary downside support, the continuation of the current trend is expected to point to 0.985 and 0.97 in the medium term.

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: 0.9877, 0.9850, 0.9700.

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: 0.9925, 0.9936, 0.9945.

GBPUSD, M15

The Cable is currently trading inside the current weekly Value Area but below the current weekly POC, which is a negative bias for today. From a technical point of view, the most critical intraday resistance area is between the W-1 VAL and the current weekly POC. In contrast, the primary support is around the current weekly VAL. As long as prices remain below the resistance area, the most likely scenario is a continuation of the downtrend toward the support and the long-period low around the 1.1437 mark. On the upside, if prices break the W-1 VAL upward, a stretch to the W-1 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: 1.1459, 1.1437.

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: 1.1515-1.1522, 1.1552.

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