THE LONDON OPENING 09-06-2022
EU STOCKS OPENED LOWER, EYES ON TODAY’S ECB MEETING
European stocks opened lower this morning in the wake of a negative Asian session, amid investors waiting for this afternoon’s ECB meeting for more clarifications regarding the central bank’s future monetary policy.
EURUSD is still looking for either positive or negative momentum to break the 12-days trading range formed in the last 12 days between 1.0650 and 1.0760.
US Treasury yield above 3%, Gold holds above 1850.
EURUSD M15
The EURUSD is still inside the 12-days trading range between 1.0650 and 1.0760, which will probably be broken after today’s ECB meeting. The central bank is widely expected not to hike interest rates but to conclude the APP, while the first hike should be in the following July meeting. From a technical point of view, the pair failed for the last two days to break the current weekly VAH, which can be considered a negative bias for today. A break of the weaker support around 1.0710 downward could lead to the W-1 VAL area, where prices could try to pull back and eventually to the 1.0680 mark in extension. On the flip side, if the pair holds the weaker support mentioned above, the most important resistance zone for the day is the one between the current weekly VAH and the W-1 POC. A breakout of these levels could lead the pair to target the 1.0759 area.
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: 1.0710, 1.0694, 1.0680, 1.0650.
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: 1.0720, 1.0729, 1.0759, 1.0780.
WTI, M15
The WTI hits fresh highs above 121 as the EIA report showed less than expected crude oil stocks. A little space to boost production and an increasing fuel demand during the coming summer season is another reason for higher highs in black Gold. From a technical point of view, long run prices have been stopped by one of the last resistance zone around 120.10 before the 125 and 130 psychological levels. However, the commodity closed the previous six weeks above the weekly POC, which could be seen as a strong positive bias. From an intraday perspective, the most likely scenario is a drop until the lower support around the current weekly VAH or the current weekly POC and then a pullback to break the 120.10 upward. On the other hand, if prices break the W-1 VAH, further and deeper drops are expected, with the following support area around the 114 mark.
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: 118.67, 117.57, 116.55, 114.
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: 120.10, 125, 130.
