US OPENING BELL 13-06-2022
US STOCKS SET FOR A LOWER OPEN; INVESTORS ALREADY PROJECTED FOR WEDNESDAY’S FED MEETING?
Following the negative first half of the European session, US stocks are set for a lower opening amid investors’ concern about how central banks will act to fight inflationary pressures, which are getting worse and worse. Eyes are on the FED meeting scheduled for this week, where FOMC is called to decide if an interest rate hike of 50 bps will be enough to decrease the cost of living. Some days ago, many analysts and investors thought the inflationary peak had passed, but prices will probably remain higher than initially thought.
There is still concern that the FED may move aggressively from an interest rate hike standpoint, causing the economy to enter a recession.
EURUSD and GBPUSD are posting fresh intraday lows; Gold holds above the critical support area around 1850.
EURUSD, M15
The EURUSD continues its drop and remains in a very tight price range this morning, ahead of the US session. From a technical point of view, the pair should at least regain the current Value Area between the 1.0453 and 1.0488 mark to try a more substantial pullback after the considerable fall on Friday. Currently, prices are trading below the current Value Area, which could be considered a negative bias for today. On the upside, another significant intraday resistance area is the 1.0518 mark, representing Friday’s daily POC. A break of this level upward could lead prices to the 1.0543 area, from which the pair could stretch to 1.06. On the other hand, until prices remain below the current daily Value Area, the most likely scenario is a continuation of the bearish short-term trend to target the 1.0453 first and the lows posted at the beginning of May.
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: 1.0453.
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: 1.0471, 1.0488, 1.0518.
S&P500, M30
The major US index updated new lows, and it is currently trading at yearly lows. As previously said, most investors will be focused on the FOMC meeting on Wednesday, where they will try to better grasp if a more aggressive monetary policy than expected would be necessary to bring inflation down. From a technical point of view, the index is trading much lower than Friday’s Value Area, which can be considered a negative bias for today. The only way for the index to pull off a noteworthy rebound would be for it to have sufficient strength to break back above the current daily VAH around 3841. in this scenario, prices could start to invert the short-term trend until higher resistance around 3908, which is a LVN for the current year, but at the same time, it is the Y-1 POC. On the other hand, until prices remain below the most important intraday support level, which is around the 3807 area, the most likely scenario is a continuation of the recent drops to target, eventually, the 3700 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: 3807.
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: 3841, 3908, 3944.
