US OPENING BELL 23-11-2022

[PocketOption]

US OPENING BELL 23-11-2022

EUROPEAN INDICES REMAIN PINNED TO RECENT HEIGHTS IN THE WAKE OF THE PMI DATA RELEASE; INVESTORS’ EYES ARE ON FOMC MINUTES.

The major European indices are trading little moved (although mostly positive) ahead of the US opening bell. Currently, the Dax is down 0.23%, while the Cac40 and Eurostoxx are up 0.09% and 0.03%, respectively.

Sentiment remained positive this morning, especially after the European PMI data beat analysts’ expectations on the upside. Specifically, the composite PMI came in at 47.8 versus expectations of 47 and the manufacturing PMI at 47.3 versus 46. The same surveys also beat analysts’ estimates positively in Germany and France (only for the manufacturing PMI data). Thus, these data show that business activity in the euro area improved in November compared to October. However, when analysing the historical data series, one realises that the trend is still in sharp decline. We will need a decisive reversal with data above the 50 mark to think we have emerged from the economic downturn.

Meanwhile, the RBNZ raised interest rates as expected by 75 bp to 4.25%. The central bank confirmed that the economy would likely enter recession over the next year, with house prices possibly falling by up to 20%.

As for the economic calendar, several noteworthy data releases are expected today. In the US, building permits, major durable goods orders, initial jobless claims, new home sales and crude oil inventories will be released. In the evening, the FOMC meeting minutes will be released.

EURUSD, M15

The EURUSD is trading close to the most significant intraday resistance between the W-1 POC and the W-1 VAL. In contrast, the LVN is the most crucial intraday support area, around the 1.0289 mark. From a technical standpoint, as prices remain below the resistance, the most likely scenario is a drop toward the support. Conversely, a breakout of the resistance could lead EURUSD prices to the W-1 VAH.

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: 1.0289, 1.0231, 1.0169.

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: 1.0323-1.0334, 1.0404.

S&P500, M30

The S&P500 rose strongly after breaking the W-1 POC and retesting it yesterday after the US cash opened. As for today, the most significant intraday support is between the W-1 VAH and the 3995 mark. From a technical point of view, as long as prices remain above this area, the most likely scenario is a continuation of the rise toward the 4043 mark. On the downside, if prices break the support downward, a drop to the lower supports (the LVN around the 3985 mark and 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: 3999-3995, 3985, 3964.

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: 4043.

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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