THE LONDON OPENING 13-06-2022
EU STOCKS OPENED LOWER AMID WORSENING ECONOMIC CONDITIONS, CABLE BELOW 1.23 AFTER GDP DATA
European markets opened lower following a negative Asian session, while investors are concerned about central banks’ interest rate policy possibly becoming more aggressive.
GBPUSD dropped to a fresh low below the psychological level of 1.23 following negative GDP data released this morning.
US Treasury yield holds above 3%. Gold sets for new highs in the risk-off environment?
Regarding the macroeconomic calendar, no notable data will be released today, apart from the GB GDP data released this morning.
EURUSD, M15
The EURUSD dropped heavily on Friday following the US CPI data release. Most investors are now thinking about the next moves from the central banks to fight inflationary pressures. Markets are currently pricing in nearly 215 basis points of total rate rises in 2022, with Fed funds futures indicating a 75 basis point boost by July. From a technical point of view, the sharp fall wiped out many of the previous support levels, which could be considered a negative bias for the medium term. The most important intraday support area is the 1.0453 mark; until prices remain above this area, they could break the nearest resistance area around 1.0495 and, eventually, try to reach the other resistance around 1.0543. If the pair also succeeds in breaking this area, a quick move until 1.06 is expected. On the downside, if prices break the main intraday support downward, the pair could target May’s lows.
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: 1.0453.
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: 1.0495, 1.0543, 1.06.
GBPUSD, M15
During the Asian session on Monday, a confluence of factors pulled the GBP/USD to a four-week low. This morning, GDP data were released quite negative than forecast, with GDP (MoM) at -0.3% against 0.1% and the yearly data at 3.4% against 3.9%. From a technical point of view, the most important intraday support area is around 1.2252 (LVN). As for the EURUSD, the sharp fall wiped out many of the previous support levels, which could be considered a negative bias for the medium term, which remains short. If prices, following the M15 Pin Bar pattern formed on the M15 chart, hold the 1.2250 area, the Cable could pull back to target the nearest resistance around 1.2336. If the pair can also break this area upward, higher resistances are around 1.2375 and 1.2450. On the flip side, if prices break the main intraday area downward, the closest target is the area of May’s lows.
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: 1.2250.
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: 1.2336, 1.2375, 1.2450.
