US OPENING BELL 10-06-2022
EUROPEAN MARKETS IN RED, US STOCKS SET FOR A LOWER OPEN FOLLOWING CPI DATA
All major EU indices currently traded between 1% and 3.5% lower, extending losses for the fourth day in a row and setting for a very bad weekly close.
US Stocks also seem set for a negative open, following the CPI data that shows how the inflation peak has probably not passed yet.
EURUSD traded at almost -2% from yesterday’s highs.
Regarding the macroeconomic calendar, ECB president Christine Lagarde is awaited for a speech this afternoon, with investors looking for fresh news regarding the next steps in the interest rate hike path.
EURUSD, M15
The EURUSD dropped heavily yesterday, and today it is extending losses ahead of the US session. Currently, it is trading much lower than the last weeks’ Value Area, which probably means that the sideways trend of the past days between 1.0660 and 1.0770 was a distribution phase. Sellers came into the market strongly, pushing down the price below 1.06. From a technical standpoint, after pulling back until the LVN around 1.0649, the pair continued the downtrend breaking the psychological level of 1.06 and reached the last uncovered POC around 1.0550, where prices could find support and buyers could try to raise the price. The most likely scenario is a further drop to target the lower support area around 1.0495. On the other hand, only a comeback above the resistance area between 1.0590-1.06 could probably lead the Euro to close the session close to parity.
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: 1.0554, 1.0495.
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: 1.0590-1.06, 1.0649.
S&P500, M30
The major US index dropped heavily following CPI data showing that probably the FED has to maintain a very hawkish attitude to fight the inflationary pressures. From a technical point of view, the current trend is definitely short, with prices that fell below the previous weeks’ Value Area building a negative momentum. The most likely scenario is a continuation of the actual trend to target the lower Low Volume Node around 3908, where prices could try to bounce back. On the other hand, if prices can regain the current daily VA around 3985, the most likely scenario becomes a return until the 4010 mark first and another drop to lower support then. On the upside, only a recovery of the 4050 area could lead the S&P to an attempt to regain ground.
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: 3908.
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: 4026, 4050, 4073, 4101.
