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US OPENING BELL 23-12-2022

Started by PocketOption, Dec 29, 2022, 12:35 pm

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PocketOption

US OPENING BELL 23-12-2022

EUROPEAN EQUITIES ARE LITTLE MOVED WITH THE HOLIDAY BREAK AHEAD; THE US GDP AND LABOUR MARKET DATA CAME IN BETTER THAN EXPECTED, WHILE INVESTORS’ EYES ARE FOCUSED ON THE PCE DATA DUE TO BE RELEASED.


The major European indices are mainly mixed on this Friday, characterised by low trading volumes due to the upcoming Christmas break (the London stock exchange will close early). At the moment, the Dax is advancing by 0.23%, while the Cac40 and the Eurostoxx are giving up 0.15% and 0.06%, respectively.


Yesterday evening we witnessed a decent recovery in the equity segment, with the US indices regaining ground in the evening after heavy post-opening losses mainly due to the GDP and labour market data releases. Specifically, quarterly GDP came in at 3.2% versus the 2.9% expected, while initial jobless claims came in at 216K versus the 222K expected. Both of these figures, therefore, substantially beat expectations, demonstrating the resilience of the US market and leaving the way clear for the Fed to continue its restrictive policy without a second thought (hence the initial reason for yesterday’s slump).


However, more key data will be released today, namely PCE, the Fed’s preferred measure of inflation. Should the data be in line or even better than expected, we could see another bearish lunge in the short term.


Elsewhere, oil resumed its climb after yesterday’s pause due mainly to the US dollar rise following the data’s release. In today’s trading day, it seems that investors have returned to focus on the possible production cut by  (which will not supply the price cap countries) and the simultaneous increase in demand by China, which is continuing its process of reversing its anti-Covid policies.


As for other data to be released later in the day, attention should be paid to Canadian GDP and new home sales in the US.




EURUSD, M15



Once again, the EURUSD horizontal channel continues to work well. Trying to find selling opportunities around the main intraday resistance area (the W-1 VAH) and buying opportunities around the most significant support area (between the 1.0612 mark and the W-1 POC) is a strategy that could have generated good profits. From a technical standpoint, we could assist in a bullish or bearish stretch if prices break the resistance or the support, respectively. On the upside, the following resistance could be the yearly HVN, while on the downside, the next support could be the W-1 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: 1.0612-1.0588, 1.0545.


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: 1.0650, 1.0730.


S&P500, M30



The S&P500 dropped heavily yesterday and reached the 3765 mark. It recovered from there and is trading close to the main intraday resistance area between the LVN and the current weekly VAH. In contrast, the most significant intraday support area is the current weekly VAL. From a technical point of view, as long as prices remain below the resistance, the most likely scenario is a continuation of the drop to retest the support. On the other hand, a breakout of the resistance could lead prices to 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: 3795, 3765.


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: 3841-3858, 3892, 3908-3913.


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 23-12-2022 appeared first on Key To Markets Blog.


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