US OPENING BELL 11-10-2022

[PocketOption]

US OPENING BELL 11-10-2022

EUROPEAN MARKETS CONTINUE TO FALL AS GEOPOLITICAL TENSIONS ESCALATE; BOE ISSUES WARNING ON LONG-DATED BOND MARKET, WHILE SAFE HAVENS CONTINUE TO APPRECIATE.

All major European indexes remain negative at mid-session, with the Dax currently giving up 0.29%, the Cac40 0.05% and the Eurostoxx 0.26%. Nothing seems to be able to improve market sentiment. In the morning came German Chancellor Scholz’s words (similar to a U-turn). He said that, unlike a few weeks ago, his government is ready to support the issuance of European (instead of national) debt to finance the energy crisis that will likely impact Europe next winter. These statements failed to create any critical support for the old continent’s stock markets. At the same time, the BoE has issued a warning about the long-dated bond market, saying it is concerned about the financial stability of the system, while it was just a few minutes ago that Bloomberg reported that several pension funds had asked the central bank to extend its intervention in the market until at least the end of October (currently the deadline is set for the 14th).

Elsewhere of note is the poor performance of WTI for the second consecutive day (currently trading at -1.39%) after a significant rally in recent weeks. At the same time, there is no particular movement on major cryptocurrencies.

Regarding the macroeconomic calendar, it will be necessary to follow closely, as mentioned in this morning’s analysis, the scheduled speeches of the FOMC and UK central bank governor Bailey.

EURUSD,  M15

The EURUSD is now trying to overcome the most significant intraday resistance area between the W-3 VAL and the D-1 VAH. The trend remains bearish, but the pair is posting higher highs and lows. As long as the pair remains below the W-2 VAH & W-1 VAL, we cannot expect a strong recovery for the Euro, and the most likely scenario is a continuation of the trend to target the W-2 POC. On the flip side, if prices break the 0.09743 mark upward, prices could target the W-1 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: 0.9633.

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: 0.9717-0.9699, 0.9740.

S&P500, M30

The S&P continues its drop and is now trading below the most significant intraday resistance, between the 3641 and the 3619 marks. In contrast, the last notable support is the October 3rd low around the 3558 mark. From a technical point of view, as long as prices remain below the resistance area, the most likely scenario is a continuation of the trend toward the support and below. On the other hand, if prices can retrieve the W-2 POC, a stretch to the W-1 VAL 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: 3558.

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: 3619-3641, 3679-3689.

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

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