US OPENING BELL 17-06-2022
US STOCKS ARE TRYING TO RECOVER RECENT LOSSES AHEAD OF THE US CASH SESSION; EU CPI DATA MET EXPECTATIONS SUPPORTING EURO
All US stock futures contracts are up around 1% this Fryday ahead of the cash session, putting key indexes on course to recover following a big selloff sparked by concerns about slowing economic growth.
The EU CPI data released this morning met expectations, with the Core CPI released as expected at 3.8% (YoY) and the CPI at 8.1% (YoY), supporting the Euro and adding more pressure on the ECB about the necessity of a tighter monetary policy.
This afternoon investors will be on Powell’s speech and US industrial and manufacturing production data, with both expected to slow down from the previous month.
EURUSD, M15
The EURUSD holds for the moment the main intraday support zone between the current weekly VAH and the D-1 VAH. However, the two rebounds posted this morning were not strong enough to bring the pair up (just a few pips from 1.05 to 1.0535); Buyers are still not controlling the market. From a technical point of view, as long as the pair continues to trade above last week’s Value Area, there are chances for more substantial rebounds up to the annual LVN. Still, the most likely scenario remains a return inside the Value Area and continues the downtrend towards the 1.04 area, with intermediate supports highlighted in the chart.
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: 1.05-1.0487, 1.0444, 1.0403.
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: 1.0580.
S&P500, M15
The Major US index reached the crucial long-term support zone between the 3580 and the 3649 mark. In that zone lay the 2021 yearly VAL and the 2020 yearly VAH, which means this could be a really sensitive zone where buyers could enter the market and lead the S&P to a more important rebound from the recent bottoms. From an intraday standpoint, if prices regain the current weekly Value Area, a continuation of the rebound to target the current weekly POC first and the current weekly VAH is expected. This movement could be quick due to low volume zones above the 3725 mark. On the flip side, until prices remain below last week’s Value Area, other attempts to break the long-term support area became the most likely scenario.
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: 3580-3650.
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: 3717, 3767, 3815.
