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THE LONDON OPEN 04-11-2022

Started by PocketOption, Nov 05, 2022, 03:11 am

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PocketOption

THE LONDON OPEN 04-11-2022

EUROPEAN EQUITIES OPENED HIGHER AFTER A MIXED ASIAN SESSION; THE GBP COLLAPSED AFTER THE 75 BP HIKE AS BOE WARNED A LONG RECESSION LOOMS; INVESTORS’ EYES ON US NON-FARM PAYROLLS.


European stocks opened the day on a positive note crunching to recover losses of the past two days due mainly to monetary policy developments that came from overseas. The Asian session, on the other hand, closed mixed, with the ChinaA50 index gaining 3.94%, the ASX200 0.5%, and the Nikkei giving up 1.68%. The Shanghai and Shenzhen stock exchanges also performed very well.


This newfound positive sentiment in Asian bourses was due to two main factors: new speculation about the possible loosening of the Chinese government’s anti covid policies and a Bloomberg report that US authorities had finished their audit of Chinese companies listed in the States ahead of time (an indication that the procedure would be completed without too many complications).


On the monetary front, on the other hand, the gap in monetary policies between the FED and BOE widens, and although the latter raised rates as planned by 75 bp yesterday, Cable gave up 2.71% on its worst day since Sept. 23.


The movement recorded by the pound is explained through Bayley’s words. As things stand, the BOE expects that the peak in rates in Britain will occur at a level probably lower than the 5% or so priced in so far by the market because if it does not, the country would be facing one of the heaviest recessions in history that could last for two years.


As for the macroeconomic calendar, investors will focus today on composite and services PMI data from various European states and US labour market data, including Non-Farm Payrolls.




EURUSD, M15



The EURUSD dropped heavily yesterday and posted this morning a bearish pin bar around the most important intraday resistance area, the LVN, at 0.9795. It is now approaching the most significant intraday support, the W-3 VAH & W-2 VAL. From a technical point of view, as long as prices remain below the LVN, the most likely scenario is a continuation of the downtrend to break the support, targeting the W-3 VAL. On the flip side, a breakout of the resistance could lead prices up to the 0.9833-0.9848 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: 0.9763, 0.9702.


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: 0.9795, 0.9833-0.9848.


WTI, M15



The WTI dropped to our W-1 POC support yesterday and started to rise to the most crucial intraday resistance area again between the W-3 VAH and the W-1 VAH. It broke the area, and should this breakout be confirmed, another stretch to the last resistance around 89.89 could happen. If prices also break the 89.89 mark, the last target could be the 90.94 mark. On the opposite side, the most critical intraday support area has now become between 89.30-89.00. Only a confirmed downward breakout of these levels could lead prices to the current weekly POC around the 87.84 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: 89.30-89.00, 87.84, 87.35.


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: 89.89, 90.94.


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 04-11-2022 appeared first on Key To Markets Blog.


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