US OPENING BELL 07-11-2022

[PocketOption]

US OPENING BELL 07-11-2022

EUROPEAN EQUITIES RECOVERED EARLY LOSSES AHEAD OF THE US OPENING; MARKETS’ EYES SHIFT TO THE MID-TERM US ELECTION, WHILE THE USD FAILED TO REGAIN MOMENTUM.

Major European stocks recover from this morning’s slight losses and are now trading in positive territory, with the Dax gaining 0.83%, the Cac40 0.13% and the Eurostoxx 0.62%. Sentiment remains positive in the wake of last week’s close despite non-positive data from China this morning. Failures by health authorities in Beijing to reconfirm the possibility of easing anti-covid policies also failed to affect the market in an overly negative way.

This is probably because investors’ attention is already turned to the outcome of the U.S. medium-term elections, which could lead to a new deadlock in American politics. The latest polls give the Republicans the lead. Still, regardless of the outcome of the vote, history shows that the equity sector has virtually always taken value during mid-term elections.

Elsewhere, on the FX market, the U.S. dollar gives up all of the morning’s gains and currently trades at the lows since Oct. 28, while on the commodities front, WTI oil continues its rise and is now very close to completing the pullback on the last resistance level broken around $90.85/barrel.

As for the macroeconomic calendar, as mentioned earlier, no primary data is expected to be released today.

EURUSD, M15

The EURUSD broke the primary intraday resistance (the W-2 POC & W-1 VAH) and is now pulling back to retest the area. However, sellers showed a significant presence around the area highlighted by the blue rectangle in the chart. This area is now the most considerable intraday resistance area. In contrast, the main intraday support has become the low of the last two candles. If prices can consolidate above the resistance area, the most likely scenario is a breakout of the LVN around the 1.0023 mark. On the flip side, a breakout of the support could lead prices to the 0.9950 mark and the W-2 VAL.

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: 0.9972-0.9965, 0.9929, 0.9880.

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: 1.0023.

S&P500, M30

The S&P500 is approaching the main intraday resistance area, the W-2 VAL. It posted two pin bars on the resistance, which can be considered a negative bias for today. In contrast, the most crucial intraday support is the W-1 VAL. From a technical point of view, as long as prices remain below the resistance, the most likely scenario is a drop toward the support. This drop could find intermediate support around the 3777 mark. On the other hand, if prices break the resistance upward, a quick stretch toward the W-2 POC could occur.

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: 3777, 3750, 3729.

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: 3791, 3840.

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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