THE LONDON OPEN 16-01-2023

[PocketOption]

THE LONDON OPEN 16-01-2023

EUROPEAN STOCKS OPENED MIXED AFTER A POSITIVE ASIAN SESSION; THE WORLD ECONOMIC FORUM IN DAVOS KICKS OFF TODAY, WHILE THE USD CONTINUES TO EDGE LOWER AND IS TRADING AT  7-MONTHS LOWS.

Most European indices traded up this Monday, after a positive Asian session, except the Nikkei (-1.14%). The ChinaA50 index gained 1.76%, and the ASX200 gained 0.82%. The Shenzen and Shanghai stock exchanges were also positive.

Today should not hold many surprises, and trading volumes should remain relatively flat due to the holiday in honour of Martin Luther King observed today in the States.

In the meantime, it is interesting to note that the yield on the Japanese ten-year reached the ceiling indicated by the BoJ in its YCC (the yield curve control policy) at 0.5%. This rise in yields, although the bank has already made it clear that it has no immediate plans to intervene with unlimited bond buying, is seen by many investors as a prelude that the BoJ may still adjust its YCC policy at this week’s meeting, after the big surprise with which it intervened last month. The JPY, meanwhile, reached its highest level since late May 2022.

Elsewhere, there are no significant movements to report except on the crypto front, where the two major currencies, BTC and ETH, continue their rally and regain the $1500 and $21000 marks, respectively.

As far as the economic calendar is concerned, there are no data of particular importance to report today. However, it will still be necessary to follow the Eurogroup meeting, Bayley’s (BOE) scheduled speech and the start of the World Economic Forum in Davos, Switzerland, where more than 2700 leaders from various countries and over 370 global business leaders will participate.

EURUSD, M15

The EURUSD continues to move higher but is now trapped between the most significant intraday resistance and support. In particular, the first is the W-1 VAH, while the latter is the 1.0866 mark. From a technical point of view, the sideways trend will continue as long as prices remain between those levels. On the flip side, a breakout of the support could lead prices toward the W-1 POC, while an upward breakout of the resistance could lead the pair toward the yearly LVN around the 1.0945 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: 1.0817, 1.0743, 1.0718.

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: 1.0866, 1.0943.

GBPUSD, M15

The GBPUSD is approaching the most critical intraday support area, the W-1 VAH. Another support is the rising trend line. In contrast, the most significant intraday resistance area is the 1.2275 mark. From a technical standpoint, as long as prices remain above the support, the most likely scenario is a move toward resistance. On the flip side, a breakout of the support could lead prices toward lower supports, meaning the W-1 POC and 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: 1.2200, 1.2166, 1.2126.

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: 1.2275.

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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