THE LONDON OPEN 07-10-2022

[PocketOption]

THE LONDON OPEN 07-10-2022

EUROPEAN STOCKS OPENED AROUND PARITY AFTER A NEGATIVE ASIAN SESSION; HAWKISH RHETORIC FROM FED MEMBERS CONTINUES AS INVESTORS AWAIT NFP DATA TO BE RELEASED TODAY.

European stocks opened trading around parity after a negative Asian session, where both the ASX200 index and the Nikkei gave up 0.80%. This morning came German retail sales data, which partly disappointed expectations: the annual figure met expectations of -4.3%, while the monthly figure was worse than expected and amounted to -1.3% against the -1.1% expected. Today’s morning is likely to be characterized by light trading and few significant movements until the release this afternoon of the US NFP data. The escalation of tensions in the -e conflict also continues, with the U.S. president going so far as to call for NATO to use nuclear weapons before  does and with President Biden reiterating how there is a substantial danger of a nuclear “Armageddon” for the first time since the 1962 Cuban Missile Crisis given that his counterpart Putin “is now in a corner” and losing control over much of the front line.

Elsewhere, for the same reason, there remains little movement in the FX market, as well as in the commodities market, with gold and silver retracing slightly in a trend that remains nonetheless set to the upside in the short term and WTI struggling to regain its September highs after putting in a 17% rise from its lows.

As for the macroeconomic calendar, investors’ attention today will be almost exclusively on NFP and U.S. unemployment, as this data will be the only real market mover today.

EURUSD, M15

The EURUSD continues its drop and is now trading on the edge of the current week’s Value Area. From a technical point of view, the most significant intraday resistance area is the current weekly POC, while the most critical support is the current weekly VAL. As long as prices remain below the resistance, the most likely scenario is a continuation of the trend to target the W-1 VAH and the W-2 VAL in extension (especially if prices break the support downward). On the flip side, breaking the resistance could lead prices to the W-2 POC.

Main intraday support areas where to look for long trades in case of a bullish candlestick pattern or short trades in case of a bearish candlestick pattern: 0.9765, 0.9743, 0.9689.

Main intraday resistances areas where to look for short trades in case of a bearish candlestick pattern or long trades in case of a bullish candlestick pattern: 0.9802, 0.9838.

DAX, M15

The german index confirms its weakness and is now trading below the current week’s Value Area, which is a negative bias for today. From a technical point of view, the most significant intraday resistance is the current weekly VAL, while the most important support is the W-1 VAH. As long as prices remain below the resistance, the most likely scenario is a continuation of the drop toward the support. On the other hand, if prices can retrieve the resistance area, an attempt to stretch toward the 12545 and 12598 marks is expected.

Main intraday support areas where to look for long trades in case of a bullish candlestick pattern or short trades in case of a bearish candlestick pattern: 12237.

Main intraday resistances areas where to look for short trades in case of a bearish candlestick pattern or long trades in case of a bullish candlestick pattern: 12434, 12545, 12598.

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 THE LONDON OPEN 07-10-2022 appeared first on Key To Markets Blog.

Source: THE LONDON OPEN 07-10-2022