THE LONDON OPENING 21-06-2022

EUROPEAN STOCKS EDGE HIGHER AFTER A POSITIVE ASIAN SESSION; USD PULL BACK FROM RECENT HIGHS; EYES ON WALL STREET AFTER THE SEMI-CLOSURE DAY.

Eu stocks opened higher this Tuesday after a positive Asian session and a deep sell-off in the previous week: Dax gains 0.72% and Eurostoxx 0.89%. However, concerns remain among investors about interest rate hikes to fight inflationary pressures and a possible recession for the economy.

Elsewhere, the EURUSD tries to hold above 1.05 as the USD is pulling back from its recent highs, but the short-term up trend may not last long. The WTI is fighting to regain the psychological level of 110, and Gold is trading around parity.

Regarding the macroeconomic calendar, no notable events are scheduled for today, apart from several FED and BoE member’s speeches, CAD Retail Sales and US Existing Home Sales.

EURUSD, M15

The EURUSD is gaining 0.5% this morning and is trying to regain the 1.0550 mark. It is currently trading above last week’s Value Area and the current weekly Value Area, which could be considered a positive bias for the day. From a technical point of view, the main intraday support zone is between the D-1 POC and the 1.0537 mark. Until prices manage to remain above this support area, the most likely scenario is a continuation of the actual short-term trend to target the LVN around 1.0580 and, eventually, the 1.0614 mark, which is a medium-term resistance. However, the long-term trend remains bearish, and this uptrend may not last long, especially if the pair breaks the main support area downward; in that case, a drop until the W-1 VAH and the W-1 POC is expected.

Main intraday support areas where to look for long trades in case of bullish candlestick pattern or short trades in case of bearish candlestick pattern: 1.0537, 1.0525, 1.0490, 1.0446.

Main intraday resistances areas where to look for short trades in case of bearish candlestick pattern or long trades in case of bullish candlestick pattern: 1.0580, 1.0614.

GBPUSD, M15

The Cable showed an excellent bullish momentum this morning, and it is trading above the last week’s Value Area and the current weekly Value Area. This could be considered a positive bias for today. From a technical point of view, the most interesting intraday support zone is between the W-1 VAH and the D-1 POC. Until prices remain above it, the outlook (in the short-term) remains positive. However, prices found a weak resistance area around the D-1 VAH, so the most likely scenario is a pullback until the intraday LVN followed by a rise to target the D-1 VAH again and the 1.2345 mark in extension. On the other hand, if prices fall below the intraday LVN, a drop until the main support zone is expected.

Main intraday support areas where to look for long trades in case of bullish candlestick pattern or short trades in case of bearish candlestick pattern: 1.2280, 1.2243, 1.2173.

Main intraday resistances areas where to look for short trades in case of bearish candlestick pattern or long trades in case of bullish candlestick pattern: 1.2298, 1.2345, 1.2430.