US OPENING BELL 13-10-2022

[PocketOption]

US OPENING BELL 13-10-2022

EUROPEAN EQUITIES TRY TO STAY ABOVE PARITY AHEAD OF THE US OPENING BELL; INVESTORS' FOCUS IS NOW ON US CPI DATA.

European equities recovered from the bad opening and tried to stay above par ahead of the US session, before which the all-important inflation data will be released. At the moment, the Dax gained 0.67%, the Cac40 0.17% and the Eurostoxx 0.16%. Trading continues to be thin this morning precisely because most traders are waiting to see the data's outcome before taking a market position. Analysts estimate an annual figure of 8.1% and a monthly figure of 0.2%. On the other hand, the monthly Core CPI figure is expected to come in at 0.5% versus the previous 0.6%. These data will substantially impact the market because they are the primary data the Fed looks to pursue its monetary policy (along with the labour market data). Should inflation remain at these levels or even higher, it will be virtually impossible, especially after seeing the FOMC minutes from the last meeting, to think of a more accommodative Fed in the coming months. Consequently, much pressure will remain on all risk-on assets. On the contrary, a lower-than-expected figure could give the market some breathing space, especially the equity and bond markets.

Elsewhere, of note on the crypto front is the continued decline of the major digital currencies, BTC and ETH, with the former falling back below 19000 and the latter below 1300; both are trading very close to the 22 September lows. No significant movement also on WTI and TTF, while silver and gold are trying to recover from recent losses and are trading at +0.25% and +1.11%, respectively.

As for the macroeconomic calendar, today, as mentioned several times, we will need to follow the US CPI data, along with initial claims for unemployment benefits and crude oil stocks.

EURUSD, M15

The EURUSD posted an excellent raise this morning and, after overcoming the current weekly VAH, reached the 0.9743 mark, as expected. However, a notable rebound is unlikely until prices fail to break the 0.9743 area upward. From a technical point of view, as long as prices remain below the 0.9743 mark, a pullback toward the current weekly VAH/POC is the most likely scenario. On the flip side, if prices break the W-2 VAH & W-1 VAL upward and consolidate above it, a stretch to the W-1 POC 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: 0.9724-0.9707, 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: 0.9743, 0.9800.

S&P500, M30

The S&P is trying to recover from recent lows and is now trying to overcome the current weekly POC, which is the most significant intraday resistance area. From a technical point of view, as long as prices remain above the 3592 mark, the most likely scenario is an upward movement toward the W-2 VAL and the W-2 POC in extension. On the other hand, if prices fail to consolidate above the POC posting a fake breakout, a continuation of the drop is expected to target the 3558 mark.

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: 3592, 3619, 3641.

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 13-10-2022 appeared first on Key To Markets Blog.

Source: US OPENING BELL 13-10-2022