US OPENING BELL 13-07-2022
EUROPEAN STOCKS EDGE LOWER DESPITE UNEXPECTEDLY HIGH GDP DATA FROM THE UK AND AHEAD OF KEY CPI DATA FROM THE US, WHERE EQUITIES ARE EXPECTED TO OPEN SLIGHTLY POSITIVE
European equities turn negative ahead of the release of crucial US CPI data. All investors are waiting to see whether the Fed will continue its very aggressive rate hike policy even after the already discounted 75 bbs hike at the July meeting. As already reported, even the unexpectedly positive data from the UK failed to improve sentiment in the first half of the trading day.
The Euro tries to recover from yesterday’s low just below parity with what appears to be a double bottom right at the psychological support of 1.00. Still, in all likelihood, the data coming out shortly will disrupt the setup. Institutional investors are waiting for the result before positioning themselves in the market. At the same time, oil, currently trading at +0.71%, is struggling to recover from yesterday’s losses.
Regarding the macroeconomic calendar, the last notable event is the US Crude Oil Inventories, due to be released later this afternoon.
EURUSD, M15
The EURUSD improved its setup during the European session, recovering the current weekly POC and now pointing to the current weekly VAH. However, as already mentioned, a lot of today’s movement will depend on US data. For the time being, we have noticed a further presence of buyers at the psychological level of 1.00. From a technical point of view, the main intraday resistance area is between the current weekly VAH and the W-1 VAL, while the most significant support is still around parity. If prices break the resistance upward, the pair will have chances to target higher resistance around the 1.0135 mark and the W-1 POC in extension. On the flip side, if prices break the support, other drops are expected, and prices could target the 0.098 and the 0.9750 mark in the medium term.
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: 1.0005-1.00.
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: 1.0072, 1.0087, 1.0135.
S&P500, M30
The S&P500 declined yesterday in the last part of the US session but closed slightly above the most critical intraday support, the W-1 VAL, highlighting the importance of that area. From a technical point of view, as long as prices remain above this area, the most likely scenario is a rebound to target the current weekly VAL and the current weekly POC. The rebound could be more significant if prices can also retrieve the current weekly POC. On the other hand, should prices break the main intraday support downwards, other drops are expected to target the LVN around the 3781 mark and the uncovered POC around the 3751 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: 3818, 3781, 3751.
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: 3843, 3853, 3876.
