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Matteo Marchetti Market Strategist
Analysis, Market Analysis | July 1, 2022

THE LONDON OPENING 01-07-2022

EUROPEAN STOCKS OPENED LOWER AFTER A NEGATIVE ASIAN SESSION AND DESPITE POSITIVE MANUFACTURING DATA RELEASED IN CHINA; EYES ON EU CPI DATA

European stocks opened lower this morning after yesterday’s negative session on Wall Street and after a sluggish Asian session, where good data on China’s manufacturing PMI were not enough to reverse the course. Today, investors’ eyes will be on European CPI to understand if inflation has peaked or if there are signs of it.

Elsewhere, the WTI dropped after the OPEC+ meeting, in which the members decided to add back all the barrels taken off during the pandemic but did not clarify any future move in oil production. Bitcoin and Ethereum posted another multi-monthly low below 19000 and 1000, respectively.

Regarding the macroeconomic calendar, German Manufacturing PMI, British Manufacturing PMI and European CPI are due to be released this morning. At the same time, this afternoon, investors will look at the ISM Manufacturing PMI in the States.


EURUSD, 15

The EURUSD dropped heavily yesterday, breaking the main intraday support (W-2 POC area) and reaching the W-2 VAL. Buyers then supported the market and the pair recovered the current weekly Value Area. The pair is currently trading below on the main intraday support for today, between the current weekly VAL and the W-2 POC. From a technical point of view, until the EURUSD holds this area, the most likely scenario is a continuation of the uptrend started yesterday afternoon to target higher resistances around the W-2 VAH, which is also the most significant from an intraday standpoint. On the flip side, should the pair break the support downward, another drop to target the W-2 VAL again is expected, with weaker support around the 1.0430 mark.

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: 1.0461-1.0453, 1.0430, 1.0410.

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: 1.0492, 1.0509.

GBPUSD, M15

The Cable is fighting around the most substantial intraday support level, between the current weekly VAL and the current weekly POC. From a technical point of view, until the pair holds this support, the most likely scenario is a rise to target the most significant intraday resistance area, which is the W-2 POC. On the other hand, if the GBPUSD breaks the support area downward, a continuation of the drop until the W-2 VAL with weaker support around the 1.2074 mark is expected.

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: 1.2132-1.2109, 1.2074, 1.2020.

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: 1.2176, 1.2226-1.2240.

 

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