THE LONDON OPENING 14-06-2022
EU STOCKS TRY A REBOUND AFTER ANOTHER US AND ASIAN DEEP RED SESSION; VIX TO NEW HIGHS AROUND 35
Eu stocks are set for a positive open, trying to regain some of the recent losses after another negative US and Asian session. Investors’ focus is on the next three days when the meetings of three major central banks are scheduled. FED on Wednesday, BoE on Thursday and BoJ on Friday. They will try to better understand if a more aggressive than initially thought interest rate hike will be necessary to cool down inflation. This move could lead many economies worldwide into a recession.
EURUSD sets for a slight rebound after posting a new low below 1.04. Gold erased the last 15-days gains in one session.
Regarding the macroeconomic calendar, German ZEW economic sentiment and US PPI are due to be released this afternoon.
EURUSD, M15
The EURUSD posted a new low below 1.04 and then started a slight rebound regaining the current weekly Value Area. This move could be considered a positive bias for today, at least until the pair can consolidate above the current weekly POC, which is around 1.0440. However, the trend remains markedly short, and this might only be a slight rebound due to profit-taking, and then proceed with the bearish movement. From a technical point of view, the main intraday support is the current weekly VAL and, eventually, the yearly LVN around 1.0390. If the pair holds these two levels, it could target higher resistance around the weekly VAH and the psychological level of 1.05 in extension. On the flip side, if the pair fails to hold the mentioned support after today’s data, the most likely scenario become a continuation of the recent drop to target lower support located around 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: 1.0425, 1.0390.
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: 1.0480, 1.0494, 1.0543.
GOLD, M30
The most important precious metal erased 15-days of movement in one session, bringing down the value to below 1810 on investors’ concerns related to the potential aggressive interest rate hike ahead that could make Gold less attractive to investors. This morning it regained the current weekly Value Area and is currently fighting to regain the current weekly POC. If prices can consolidate above the POC, they could target higher resistance areas around 1840 and, in case of a break of this level upward, the current weekly VAH. On the other hand, if prices fail to consolidate above the current POC, the most likely scenario is another drop to retest the most important intraday support around 1818. On a long-term basis, particular attention should be paid to the support area between 1780 and 1790, where 2021 POC and current yearly VAL are located.
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: 1818.50, 1810.50.
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: 1840, 1856.
