Major European equities remained above parity at mid-session, trying to set up a bullish day by recovering recent losses: currently, the Dax gained 0.71%, the Cac40 0.72% and the Eurostoxx 0.73%. US index futures also indicate a positive opening on Wall Street. Nevertheless, sentiment remains very fragile, with most traders still concerned about global geopolitical and macroeconomic conditions. Negative news also came this morning from Denmark regarding the Nord Stream pipeline in the Baltic Sea; three unexpected leaks were reported, which decreased the amount of gas reaching the continent. The operator made it known that it is impossible to estimate the time needed for repairs at the moment. Still, some think that an act of sabotage from Russia is behind this problem, especially considering that three simultaneous leaks of this type have never occurred before.
Elsewhere, WTI oil remained stable, as did gold and silver, while the two main cryptos, BTC and ETH, advanced significantly by around 5%.
Regarding the macroeconomic calendar, as already mentioned, investors will focus on today’s data from the US on core durable goods orders and new home sales; other events to watch will be scheduled speeches by various ECB and Fed members. The BoE chief economist Pill is also expected to speak in the afternoon.
The EURUSD continues its sideways trend between the 0.9549 mark and the W-1 VAL. These two areas represent the most critical support and resistance for today. Another interesting resistance is the current weekly POC, which prices are trying to overcome. From a technical point of view, as long as prices remain below the 0.9644 mark, the most likely scenario is a drop towards the lower and most significant support. On the other hand, if prices break the current weekly POC upward, a stretch to the W-1 VAL and attempt to break it 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: 0.9549.
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: 0.9644, 0.9689, 0.9781.
The S&P500 is trying to recover from recent losses and is now trading around the most significant intraday resistance area, which is between the weekly LVN and the 3725 mark. In contrast, the most critical intrada support area is the 3635 mark. From a technical point of view, as long as prices remain below the resistance zone, the most likely scenario is a continuation of the drop to target the support. On the flip side, if prices break the resistance upward, they could stretch toward the W-1 VAL.
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: 3635.
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: 3703-3725, 3763, 3829.
POC= Point of Control
VAH= Value Area High
VAL= Value Area Low
LVN= Low Volume Node
HVN= High Volume Node
W-1= last week
W-2= two weeks ago
W-3= three weeks ago
D-2= two days ago
D-3= three days ago