THE LONDON OPENING 08-07-2022
EUROPEAN STOCKS EDGE LOWER AFTER A MIXED ASIAN SESSION AND AHEAD OH THE NFP RELEASED; THE EURO CONTINUES ITS DROP TO PARITY.
European equities are expected to open slightly lower this Friday in the wake of a mixed Asian session. Investors will focus today on the release of US Non-Farm Payroll data to understand US labour market trends. At the same time, the political crisis in the UK, coupled with the assassination attempt on former Japanese Prime Minister Abe, contributed to a climate of uncertainty in global markets.
After yesterday’s publication of the minutes from the most recent meeting and before the next meeting, where a rate hike is anticipated to continue battling inflationary pressures, investors will eagerly await ECB President Lagarde’s speech scheduled for today.
Regarding the macroeconomic calendar, apart from the US NFP and the ECB president’s speech, the US unemployment rate and the Average Hourly Earnings will be released this afternoon, along with Canadian employment change.
EURUSD, M15
The EURUSD continues its drop; sellers are in total control of the market, and every rebound is an opportunity to put more pressure on the pair. In the early morning, it posted another lower low, signalling the extreme weakness of the Euro against the greenback. The pair is trading below the current weekly POC and on the edge of the current week Value Area, which can be considered a negative bias for today. From a technical point of view, the most important intraday support is the current week VAL, around the 1.0145 mark; at the same time, the most significant intraday resistance area is the current weekly POC. Until prices remain above the main support, the most likely scenario is a continuation of the current sideways trend (slightly downwards) with the EURUSD that probably will bounce between this area and the upper resistance. On the other hand, if prices break the 1.0145 mark, other drops are 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: 1.0145, 1.01.
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: 1.0188, 1.0237.
GOLD, M30
The greenback’s strength put pressure non only on the Euro but also on gold, which will probably post one of the worst weeks in recent months. The yellow metal trades around the weekly POC and above the current main intraday support, the current weekly VAL. From a technical point of view, as long as prices remain below the current weekly POC, the most likely scenario is a continuation of the drop until the main support below. On the other hand, if prices succeed in consolidating above the weekly POC, a pullback to the LVN around the 1750 mark 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: 1732.80.
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: 1743.10, 1750.80.
