THE LONDON OPENING 15-09-2022

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THE LONDON OPENING 15-09-2022

EUROPEAN INDICES OPENED SLIGHTLY BELOW PARITY AFTER A MIXED ASIAN SESSION; THE JPY EXTENDED LOSSES ON A DAY WHERE A LOT OF MACROECONOMIC DATA WILL BE RELEASED.

European indexes opened just below par this Thursday after a negative Asian session in which the ChinaA50 index lost 0.07% and the Shanghai Composite 2.34%, while the ASX200 and Nikkei gained 0.21%. Sentiment remains fragile, with investors remaining concerned about the mounting signs of a recession likely to manifest between the end of this year and early 2023. This morning’s interesting news is undoubtedly the negative record set by Japan’s trade balance, which came in at -2817.3B against the -2398.2B expected, with a monthly deficit for the 13th consecutive month. This figure has never been recorded before and represents the biggest negative streak since 2015. The reaction of the JPY was not long in coming, with the USDJPY pair extending gains to touch 145.

Meanwhile, other major currencies also failed for the time being to regain the losses they suffered on Tuesday after the release of above-expected US inflation data, while major commodities remained stable. Today it will be interesting to watch the ETH’s merge on the crypto front.

As for the macroeconomic calendar, today will be a busy day. In the morning, the European trade balance will be published, and several speeches by ECB members. In the afternoon, however, investors will focus on the States, where retail sales, initial jobless claims, and the manufacturing index from the Philadelphia Fed will be released.

EURUSD, M15

The EURUSD continues to drop and is now fighting to maintain the most important intraday support between the current weekly VAL and the W-3 VAL. In contrast, the most significant intraday resistance area is around the 0.9981 mark. From a technical point of view, as long as prices remain above the support, the most likely scenario is a pullback to retest the resistance. On the other hand, if prices break the support downward, a continuation of the drop to target the W-1 POC, which is uncovered, 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: 0.9957-0.9952, 0.9914.

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: 0.9981, 1.0008.

GBPUSD, M15

The GBUSD showed more relative strength than the EURUSD and is now trading between the most critical intraday support, the W-1 POC, and the most significant intraday resistance area, which is between the current weekly VAL and the W-2 POC. From a technical point of view, as long as prices remain below the resistance area (and the W-2 VAL), the most likely scenario is a continuation of the drop to target the W-1 POC and the W-1 VAL in extension. On the flip side, if prices break the 1.1550 mark upward and consolidate above it, a stretch toward the W-1 VAH 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: 1.1500, 1.1459.

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: 1.1500, 1.1578, 1.1604.

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