US OPENING BELL 27-06-2022
US STOCKS ARE SET FOR A HIGHER OPEN FOLLOWING THE POSITIVE EUROPEAN SESSION; EYES ON ECB’S SINTRA FORUM
Wall Street’s stocks are set for a positive open this Monday, with market sentiment boosted by the slowdown in commodities prices (especially oil) that could temporary signal less inflationary pressure. In that case, central banks could afford a less aggressive monetary policy than expected. An easing of China’s Covid restrictions also helped the market sentiment.
Investors focus on the 3-days meeting promoted by the ECB in Sintra, Portugal, where central bank governors and other high-profile speakers will exchange views on the current economic situation. ECB’s President is awaited to explain the so-called anti-fragmentation tool to prevent spread widening situation between Eurozone’s different country bonds. Euro will probably strongly react to every possible scenario.
Regarding the macroeconomic calendar, US Core Durable Goods Orders and Pending Home Sales are due to be released today.
EURUSD, M15
The EURUSD, posting a higher high this morning and breaking the W-1 VAH upward, materialized the most likely scenario, which meant it reached the annual LVN. However, the pair found strong resistance around that level, which means sellers around the area are still in control of the market. From a technical point of view, the key intraday support level is around the W-1 VAH. If prices, after US cash open, can consolidate above it, a stretch to break the LVN and target the area around the 1.0614 mark is expected. On the flip side, should prices fall below that area, they could find weak support around the 1.0554 mark, but at the same time, the mentioned breakdown could lead the pair to lower support around the W-1 POC. In any case, the crucial price action driver of the Euro in the next three days will be the Sintra meeting, which will generate most of the movement on the pair.
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: 1.0562, 1.0538, 1.0509.
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: 1.0586, 1.0614.
S&P500, M30
Last week the S&P 500 closed a strongly positive week, rising more than 6%. From a technical and intraday perspective, the most interesting zones are highlighted in blue o the chart. These areas are low-volume areas, and if prices should enter one of these areas, they could cross them with a quick move. The most crucial support area is around the 3878 mark. As long as prices remain above it, the most likely scenario is a continuation of the uptrend to target the main intraday resistance area around the 3967 mark and eventually cross all the low volume area until around 4000-4020. On the other hand, if prices break the most significant intraday support area, a quick cross of the lower low volume area is expected, and then a drop until the W-1 VAH.
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: 3878, 3855, 3805.
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: 3967, 400-4020.
