THE LONDON OPENING 20-06-2022
EUROPEAN STOCKS OPENED AROUND PARITY AFTER A MIXED ASIAN SESSION; PBoC LEAVE INTEREST RATE UNCHANGED; SEMI-CLOSED DAY IN THE US FOR THE JUNETEENTH HOLIDAY.
EU stocks opened around parity after a mixed Asian session, with Nikkey losing 0.80% and ASX 50 0.64%, while China A50 raised by 0.37%. Investors’ concerns are still the same. They are worried that major central banks will have to tighten so aggressively to contain runaway inflation that they will tip the world into recession. In the meantime, the PBoC left interest rates unchanged at 3.70%.
Today’s trading session is expected to be a low volume due to the semi-closing US day dùfor the Juneteenth holiday.
Elsewhere, EURUSD is holding above 1.05; WTI lost the 110 mark, while cryptos continue to fight around historical, long-term support zones.
Regarding the macroeconomic calendar, the ECB President’s speech is scheduled for today and other ECB members’ speeches.
EURUSD, M15
The EURUSD raised strongly during the second part of last Friday’s session, reaching one of the most important resistance areas around the yearly LVN. Then it pulled back to the W-1 POC but closed the week slightly above the W-1 VAH, which could be considered a positive bias for this week. The long-term trend remains anyway bearish. From an intraday perspective, today’s most important support zone is the W-1 VAH. As long as prices stay above the level, the most likely scenario is a continuation of the current uptrend to target the LVN again and eventually break it upward. On the other hand, should prices fall back into the W-1 Value Area, the most likely scenario is a drop until the W-1 POC first and the W-1 VAL then.
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: 1.0490, 1.0446, 1.0407.
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
Cable had a similar movement compared to the EURUSD due to the high positive correlation between the two assets. It raised last Friday and then pulled back to the W-1 POC; however, unlike the EURUSD, it failed to close above the W-1 Value Area, which means the cable has less relative strength than the EURUSD. From an intraday perspective, today’s crucial support zone is the area between the W-1 POC and the W-1 VAH. Until prices remain above this area, the most likely scenario is a continuation of the recent rises to target higher resistances, which are the 1.2298 mark and the LVN above. On the other hand, should prices fail to hold this support and come back below the W-1 POC, a deeper drop until the W-1 VAL 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: 1.2235-1.2173, 1.2015.
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, 1.2430.
