THE LONDON OPENING 28-06-202
EUROPEAN EQUITIES OPENED HIGHER IN THE WAKE OF THE SLIGHTLY POSITIVE ASIAN SESSION, AND DESPITE THE NEGATIVE CLOSE OF WALL STREET; OIL CONTINUES TO RISE
European stocks opened higher this Tuesday in the wake of the Asian session where China A50 gained 0.40%, Nikkei 0.52% and ASX200 0.86%. Investors continue to be concerned about an economic slowdown and a recession, which is also compounded by supply-side tensions regarding oil: political tensions create problems for production in Ecuador and Libya. At the same time, the G7 countries propose an agreement on a price cap.
The US dollar edged lower as investors started to speculate on FED’s monetary policy, trying to understand if the central bank will decide to maintain a less aggressive rate hike than initially planned. But will this be the case, or is the market simply creating a new opportunity for sellers to return to bearish speculation on the EURUSD?
Regarding the macroeconomic calendar, Lagarde’s speech and other ECB members’ speeches are awaited this morning, while US Consumer Confidence is due to be released this afternoon.
EURUSD, M15
The EURUSD continues its rise, trading above both the W-1 Value Area and the current weekly Value Area (the current weekly VAH is around 1.0592), which could be considered a positive bias for today. However, it seems not to be strong enough to break the 1.0614 area upward. From an intraday perspective, the most important resistance level is the 1.0614 area, while very strong support is the area where both W-1 VAH and current weekly VAL are located. As long as prices continue to consolidate above the primary support, the most likely scenario is a continuation of the rises to break the 1.0614 area and target higher resistances around the 1.0634 mark (uncovered weekly POC) and the 1.0657 (current yearly VAL). On the other hand, should prices break the most important support downwards, a drop until around the W-1 POC 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: 1.0586, 1.0562, 1.0538.
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: 1.0614, 1.0634, 1.0657.
WTI, M15
The WTI continues its rise and is currently trading above the current weekly Value Area, which could be considered a positive bias for today. From a technical point of view, the most critical intraday resistance is the weekly LVN around the 110.6 area. If prices can break upward and consolidate above it, the most likely scenario is a continuation of the short-term trend to target the medium-term resistance around 112.50. On the flip side, until prices remain below the main intraday resistance, a drop until the main intraday support around the current weekly VAH is expected. In case of a breakout of this area, prices could reach, in extension, the current weekly POC 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: 108.30, 106.40, 104.76.
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: 110.58, 112.50.
