US OPENING BELL 01-09-2022

[PocketOption]

US OPENING BELL 01-09-2022

EUROPEAN STOCKS HEDGE LOWER AHEAD OF THE US OPENING BELL, EXPECTED NEGATIVE; THE EUROPEAN MANUFACTURING PMI DATA WERE MIXED BUT, OVERALL, DISAPPOINTED EXPECTATIONS.

European stocks continue to fall in this first half of the European session as we await the opening of Wall Street, which is also expected to fall. No index on the continent is currently trading in the positive, with the Dax giving up 1.44 %, the Cac40 1.46% and the Eurostoxx 1.47%. Sentiment deteriorated further after the release of European PMI data during the session, which, although mixed, were overall disappointing. In particular, the readings positively beat expectations in France and Britain, confirmed expectations in Italy, and disappointed expectations in Germany, where the Manufacturing PMI fell to 49.1 against an expected 49.8. At the European level, the figure came in at 49.6 against the 49.7 expected. In any case, although there were also positive readings in individual countries, only France currently has a figure above the 50 mark, which means that the European economy continues to be in the midst of contraction, which is especially confirmed by analyzing the sector’s performance in recent months.

Elsewhere, oil continues the slump, trading at -2.58%; in 3 days, crude oil has wiped out all the gains of the past three weeks, pushing off recent lows around $86 per barrel. Similarly, the negative day continues for metals, especially Silver, which trades at -1.80% off its June 2020 lows.

As for the macroeconomic calendar, this afternoon, investors will focus on data from the other side of the Atlantic, particularly on Initial Jobless Claims and ISM Manufacturing PMI.

EURUSD, M15

The EURUSD broke the resistance area upward this morning and, after posting a bullish engulfing after the pullback on that area, reached the current weekly VAH. However, after a while, it also posted two bearish pin bars and came back below the resistance area, which is a negative bias for the rest of the day. From a technical point of view, the most significant intraday resistance area remains between the current weekly POC and the W-1 VAH. In contrast, the most critical intraday support is between the current weekly VAL and the W-1 POC. So the scenario has been almost unchanged since this morning. As long as prices remain below the resistance, the most likely scenario is a continuation of the drop towards the 0.9986 mark. On the flip side, only a clear breakout of the current weekly VAH can serve as a boost for the pair towards the LVN.

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: 0.9986, 0.9975, 0.9943.

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: 1.0021-1.0024, 1.0041, 1.0076.

S&P500, M30

The S&P500 broke the primary intraday support yesterday (the old uncovered POC around the 3056 mark) and dropped towards the target around the 3930. Currently, prices found support around that level, and they are trying to pull back and retest the old support, which has now become resistance. From a technical point of view, the most significant intraday resistance area is between the current weekly VAL and the 3056 mark, while the most crucial support is around this morning low. As long as prices remain above the main support, the most likely scenario is a stretch to the main resistance area to break it and reach the current weekly POC again. On the other hand, if prices break the main support downward, the following target could be around the 3880 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: 3930-3918, 3880.

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: 3953-3956, 3983, 4025.

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