US OPENING BELL 07-07-2022
EUROPEAN EQUITIES TRY TO EXTEND GAINS AHEAD OF AMERICAN SESSION; POUND RISES FOLLOWING PREMIER’S RESIGNATION; CHINA ANNOUNCES PLAN TO STIMULATE ECONOMY IN SECOND HALF OF YEAR
European equities extended gains ahead of the US session, which futures are pricing slightly higher in anticipation of critical labour market data expected this afternoon ahead of tomorrow’s NFPs. Meanwhile, according to sources quoted by Bloomberg, China’s finance minister is considering a new stimulus package for the second half of the year of around 220 billion through issuing a special bond to revitalise the slowing economy.
In the UK, Prime Minister Boris Johnson has thrown in the towel after countless resignations of prominent party members following the latest scandals involving him. His resignation is expected later today, although he will probably formally remain in office until autumn, pending elections within the Conservative party to elect a new leader. The pound rose immediately after the announcement, then retraced slightly.
Regarding the macroeconomic calendar, the US Initial Jobless Claims and the Crude Oil Inventories will be released this afternoon, along with the Canadian Ivey PMI.
EURUSD, M15
The EURUSD continues to trade above the Current weekly POC in a tight range, and the more the pair continues to trade in a sideways trend, the more the likelihood of a retracement increases. The main support for today remains between the current weekly POC and the current weekly VAL. From a technical point of view, if the pair manages to hold the support after the macro data released today, the most likely scenario is a rise to target the LVN and eventually the area around the 1.0275 mark. On the other hand, if prices break the support area, the pair will probably continue its downtrend toward parity.
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: 1.0186, 1.0162, 1.01.
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: 1.0237, 1.0275.
S&P500, M30
The S&P500 is set for a higher open following the positive European session so far. It is trading above the current weekly POC, which can be considered a positive bias for today. From a technical point of view, if prices break the most crucial intraday resistance area upward, the current weekly VAH, the most likely scenario is a continuation of the actual trend to target the higher resistance around the LVN. On the other hand, if prices break the main intraday support downward (the W-1 VAH), a return to the current weekly POC is expected. The area between the latter and the W-1 POC can be considered a multi-day support 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: 3846, 3830-3824, 3787.
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: 3864, 3892.
