US OPENING BELL 06-10-2022

[PocketOption]

US OPENING BELL 06-10-2022

EUROPEAN STOCKS REMAIN NEGATIVE AHEAD OF THE U.S. SESSION; OPEC+ DECISION AND U.S. JOBS DATA WEIGH ON SENTIMENT AS INVESTORS’ ATTENTION NOW TURNS TO TOMORROW’S NFP.

All major European indexes continue to trade below parity on a day that started already on a negative note, with the Dax currently giving up 0.28%, the Cac40 0.49% and the Eurostoxx 0.31%. Weighing on sentiment remains the decision to cut oil production by the OPEC+ countries, which is seen as a potential danger in terms of slowing inflation, given that it has already caused crude prices to rise sharply in the last week; another fact not to be underestimated, as mentioned in this morning’s analysis, is the U.S. labour market data, which despite everything remains good. However, investors’ attention begins to shift to tomorrow when the nonfarm payrolls will be published, which is the data that among all those published in the States on the labour market is the absolute most market mover. Investors remain concerned since better-than-expected or otherwise good data would not convince the FED to tone down its current monetary policy, with obvious bearish consequences on risk-on assets.

In addition, volatility remains high, with Vix and Vstoxx trading just below the “guard” level of 30. On the commodities front, of note is the low touched by European gas this morning, with the TTF trading at the levels of last July 21 in Amsterdam. On the other hand, gold and silver remain little moved, as do the major cryptocurrencies.

As for the macroeconomic calendar, investors’ focus today will be on initial jobless claims in the United States, the Ivey PMI in Canada, and various scheduled speeches by several FED officials.

EURUSD, M15

The EURUSD, after the triple top around the 0.9927 mark, started to drop as expected toward the current weekly POC, which has been moved around the 0.9890 area. The pair is trading below it, which is a negative bias for the rest of the day. From a technical point of view, the most critical resistance area becomes the current weekly POC, while the most significant intraday support is the W-2 POC. As long as prices remain below the resistance, the most likely scenario is a continuation of the drop to target the support. On the other hand, if prices can retrieve the current weekly POC, a stretch to the 0.9927 mark 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: 0.9838.

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: 0.9890, 0.9967.

S&P500, M30

The S&P500 is still trying to hold the main intraday support area between the W-2 VAL and the LVN around the 3749 mark. The index tried to break the area downward yesterday, but immediately after the U.S. cash opening bell, it retrieved it, meaning buyers were still there to support the price. From a technical point of view, the setup remained more or less the same with the mentioned support and the main intraday resistance around the weekly LVN. As long as prices remain above the support, the most likely scenario is a rise toward yesterday’s high and the weekly LVN in extension. On the flip side, if prices break the support downward, a drop to 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: 3749-3763, 3689.

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: 3802, 3829.

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

The post US OPENING BELL 06-10-2022 appeared first on Key To Markets Blog.

Source: US OPENING BELL 06-10-2022