US OPENING BELL 01-07-2022
US FEATURES ARE SET FOR A LOWER OPEN AFTER POSTING THE WORST 1H IN 52 YEARS; EUROPEAN CPI HIT ANOTHER RECORD HIGH IN JUNE.
US stocks are expected to open lower this Friday after posting the worst first half of the year in the last 52 years, with investors still concerned and eager to understand more about the next moves by central banks to combat inflationary pressures.
The Eurozone inflation posted a new fresh high at 8.6% (YoY) against a forecast of 8.4% (YoY), adding even more pressure on the ECB to accelerate the tightening of monetary policy. The ECB President already confirmed a 25bps rate hike this month, but some policymakers are already asking for a more aggressive hike.
This afternoon, traders’ focus will be on the ISM Manufacturing PMI, which will be released at 3 PM (GMT+1).
The WTI recover some of the recent losses in the wake of the news that India is imposing export duties to try to keep the fuel in the country.
EURUSD, M15
The EURUSD broke the most crucial intraday support around the 1.0453 mark and found some support around the weaker support at 1.0430. From now on, the 1.0453 mark will become crucial because both the W-2 POC and the Current weekly POC are in that area. From a technical point of view, prices may not hold the weaker support, and the most likely scenario in case of a breakout, another drop to the W-2 area is expected. On the upside, a proper rebound could be expected only if the pair can regain the most important support (now resistance) around the 1.0453 mark.
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: 1.0430, 1.0410, 1.0394.
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: 1.0453, 1.0492, 1.0509.
S&P500, M30
The S&P500 is trading inside the current weekly Value Area, and for the second day in a row, it failed to break below it, which could be considered a sign of buyers’ activity in that area. From a technical point of view, the most important intraday support is the area between the W-1 POC and the current weekly VAL. This morning the S&P500 regained this area, and as long as prices remain above it, the most likely scenario is a rise until around the W-1 VAH and then to the current weekly POC in extension. On the other hand, should prices break the mentioned support area, a continuation of the drop to target 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: 3766-3742, 3717.
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: 3805, 3824, 3855.
