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US OPENING BELL 19-01-2023

Started by PocketOption, Jan 20, 2023, 10:45 am

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PocketOption

US OPENING BELL 19-01-2023

EUROPEAN EQUITIES EDGE LOWER FOLLOWING YESTERDAY’S NEGATIVE US MOVE; SENTIMENT REMAIN NEGATIVE AMONG INVESTORS; RECESSION FEARS TAKE OVER FROM HOPES OF A MORE DOVISH CENTRAL BANKS ATTITUDE.


The major European stock exchanges traded sharply lower this Thursday, following the heavy day closed by the US stock exchanges yesterday. Currently, the Dax dropped 1.36%, the Cac40 1.37% and the Eurostoxx 1.42%.


The sentiment is, therefore, back to being negative, and investors are once again weighing recessionary fears after yesterday’s negative data on industrial production and US retail sales, which made it clear that the effects of the Fed’s super-restrictive monetary policy are also beginning to be felt in the real economy.


What traders weighed most until a few days ago was a possible change in monetary policy by the FED and ECB. Still, recent speeches by central bankers and senior corporate profiles suggest otherwise. In particular, Klaas Knot (ECB) stated yesterday that the bank ‘will not stop after a 50 bp increase, for sure’ and expects rates to remain high as ‘there is still a lot of work to be done to tame inflation’. These words were echoed by Jamie Diamon, CEO of JP Morgan, who said that rates would have to stay high and exceed 5% to combat inflation that will not go away quickly.


The focus is, therefore, back on recession rather than a possible change of attitude by the major central banks.


Elsewhere, the US dollar remained stable at 102 (dollar index) but traded at period lows. The WTI, on the other hand, resumed its descent after the API report on inventories (to be confirmed later today with official data) which showed another substantial increase after last week’s.


Regarding the macroeconomic calendar, the most important events today will be the continuing speeches at the WEF in Davos and the publication of the ECB’s monetary policy minutes. In the States, on the other hand, data will be published on initial jobless claims, the Philadelphia Fed’s manufacturing index, and crude oil stocks.




EURUSD, M15



The EURUSD trades in the most significant intraday resistance area between the current weekly VAL and POC. We cannot find notable support below it until the W-1 POC. From a technical point of view, as long as prices remain below the current weekly POC, the most likely scenario is a continuation toward the lower support. On the flip side, a breakout of the resistance could lead prices back again to the 1.0866 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: 1.0743, 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: 1.0810-1.0830, 1.0866.


S&P500, M30



The S&P broke all major supports and trades below the most significant intraday resistance between the  D-1 POC and the W-1 VAL. In contrast, the most critical support is between the W-1 VAL and the W-3 VAH. We can also find weaker support around the 3874 mark. From a technical point of view, as long as prices remain below the resistance, the most likely scenario is a continuation of the drop toward the support. On the other hand, if prices rise above the resistance, an upward move could lead prices up to the W-1 POC and higher resistances.


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: 3874, 3853-3855.


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: 3921-3927, 3944.


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 19-01-2023 appeared first on Key To Markets Blog.


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