US OPENING BELL 14-09-2022

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US OPENING BELL 14-09-2022

EUROPEAN STOCKS ARE STILL BELOW PARITY BUT ARE TRYING TO RECOVER FROM YESTERDAY’S LOSSES AHEAD OF THE US OPENING BELL; THE EURO AREA INDUSTRIAL PRODUCTION FALLS MORE THAN EXPECTED.

European stocks remain below par at mid-session, in an early part of trading where they appear to be trying to rebound after yesterday’s collapse. We will see if this trend will be confirmed or refuted at the opening of Wall Street, which we know is always decisive for European stock markets. Currently, the Dax gives up 0.48%, the Cac40 0.28% and the Eurostoxx 0.25%. Influencing the stock markets remains the negative US inflation data released yesterday. Also Great Britain’s inflation data, released in the morning, confirm that inflation is still very high, although lower than expected. In this sense, the only alternative available to central banks seems to be to continue raising interest rates at a sustained pace.

Meanwhile, this morning, data on European industrial production also disappointed expectations, impacting sentiment even more negatively. The annual figure registered a decline of 2.4% against the expected 0.4%, while the monthly figure came in at -2.3% against the expected 1%.

As for the macroeconomic calendar, in the afternoon, investors will focus on more speeches by ECB officials, the US PPI (MoM) and crude oil stocks; the release of New Zealand’s GDP is also expected in the evening.

EURUSD, M15

The EURUSD tried this morning to recover part of yesterday’s losses posting two bullish engulfing and retrieving some of the intermediate resistance areas (W-3 POC & W-2 VAL and the W-2 POC). However, it failed for the time being to overcome the most significant intraday resistance area, which is the W-2 VAH. From a technical point of view, as long as prices remain below the resistance, the most likely scenario is a continuation of the drop toward the W-3 VAL. On the other hand, if the pair can recover the main resistance area, a good rebound 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: 0.9981, 0.9945.

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: 1.0027, 1.0046, 1.0084.

S&P500, M30

The S&P dropped heavily yesterday, following the US inflation data, and is currently trying to consolidate above the most significant intraday support area, the W-2 VAL. In contrast, the most crucial intraday resistance area is highlighted from the rectangle on the chart around the W-1 VAH. From a technical point of view, as long as prices remain below the resistance, the most likely scenario is a continuation of the drop towards the W-1 VAL. On the flip side, if prices can retrieve the resistance area,  a stretch to the W-2 VAH and the LVN 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: 3938, 3893.

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: 3965, 3985, 4031, 4063.

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