European equities extended this morning’s gains ahead of the US session, which is expected to rise. Currently, the Dax gained 0.88%, the Eurostoxx 1.08% and the Cac40 0.63%. Across the Channel, the FTSE is ahead 0.62%. Sentiment remains positive, helped by good labour market data from the States last week and good quarterly reports in both Europe and the US.
After a positive Asian session, the WTI lost all the early morning gains and is now trading close to last week’s lows. Gold is approaching the yearly resistance area of around 1810$ on the precious metal front. The two major cryptocurrencies, BTC and ETH, are trying again to overcome and consolidate above the most crucial long-term resistance areas around 24000 and 1700, respectively.
Regarding the macroeconomic calendar, no notable data will be released today, as already mentioned.
The EURUSD this morning was trading below the main intraday resistance area around the W-1 VAL, but at 10 AM, it posted a bullish long body candle which swept away the last 18 candle movement with high volume. The price stretched immediately to the main following resistance area around the W-2 VAH and then pulled back to the 1.0181 mark, retesting it. As we can notice, the price is consolidating above the W-1 VAL that is now the main intraday support. From now on, if prices remain above the 1.081 mark, the most likely scenario is a continuation of the rise to overcome the W-2 VAH and target the W-1 POC. On the other hand, a strong breakout of the support area could lead to the W-2 POC.
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: 1.0181, 1.0155, 1.0121.
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: 1.0214, 1.0234.
The S&P500 recovered completely all the short-term losses posted after the Friday NFP data and is now trading around the yearly LVN again. From a technical point of view, this is the main resistance area. If prices can overcome the 4169 mark, a stretch towards the 4214 mark is expected. On the flip side, should the index lose the W-1 VAH (the most significant intraday support area), a drop to the W-1 POC with intermediate support around the 4139 mark may become 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: 4153, 4139, 4117, 4109.
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: 4169, 4214.