US OPENING BELL 14-06-2022
WORLDWIDE STOCKS ERASE ALL EARLY MORNING GAINS AFTER WORSE THAN EXPECTED GERMAN ZEW; US DOLLAR TO NEW MULTI-YEAR HIGHS?
Worldwide stocks cancelled all the early morning gains after the most important german sentiment data had been released at -28 against a -27.5 forecast. Investors’ eyes are currently on the US PPI, which will give additional details about the inflationary pressures in the States.
GBP posted new lows and is now trading around the psychological level of 1.21, following harmful job-related data released this morning. The US dollar index posted a fresh multi-year high on the expectation of an aggressive interest rate hike by the FED at tomorrow’s meeting.
VIX hold above 30, and WTI is back above 120.
EURUSD, M15
The EURUSD reached the current weekly VAH and bounced back after posting a bearish engulfing on that area. It is currently fighting around the current weekly POC. As it can be easily noticed, prices are inside the current weekly Value Area and tend to move in a sideways trend ahead of the US session. Prices are probably moving in this way because every trader at the moment is waiting for additional information regarding inflation, which will come out later this afternoon. From a technical standpoint, until prices remain inside the Value Area, the most likely scenario is a continuation of the actual sideways trend. On the other hand, prices could reach the support given by the LVN in the 1.0390 area should they break the current weekly VAL downwards or the higher resistances positioned in the 1.0543 area should they break the current weekly VAH. Much will depend on the US data this afternoon.
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: 1.0417, 1.0390.
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: 1.0437, 1.0480, 1.0494, 1.0543.
GBPUSD, M30
The UK jobs statistics were announced this morning, with the employment change for March surpassing expectations but the unemployment figure worse than expected. As measured by average wages, wage growth also fell short of expectations. With these data, the BoE may only hike interest rates by 25 bps instead of deciding on a more aggressive move of 50 bps. From a technical point of view, as long as the pair trades below the current weekly Value Area, the most likely scenario is a continuation of the current downtrend to target the psychological level of around 1.20. Conversely, upper resistances can be targeted only if prices come back into the weekly VA, meaning consolidate above the current weekly VAL.
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: 1.2105, 1.20.
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: 1.2173, 1.2205, 1.2294.
