EUROPEAN STOCK PRICES TURNED POSITIVE DESPITE MIXED MACROECONOMIC DATA; US DOLLAR CONTINUES RESPONSE FROM RECENT HIGHS
European stocks turned positive during the first half of the session, despite a negative opening and mixed macro data. Investors this morning saw a slightly better-than-expected German manufacturing PMI of 49.3, but still below the 50 mark (which separates contraction from economic growth); meanwhile, retail sales fell 8.8 percent year over year, the worst decline since the series began in 1994. On the other hand, the unemployment rate in Europe remained stable at 6.6 percent, while in England the manufacturing PMI remained above 50 at 52.1 against expectations of 52.2.
Elsewhere, the US dollar remains under pressure in the short term, trading at its lowest level since July 5, while US stocks are expected to open slightly lower.
On the macroeconomic calendar, the US manufacturing PMI and ISM manufacturing will be released this afternoon.
EURUSD, M15
EURUSD was able to stay above the most significant intraday support zone around the W-1 VAH this morning and, as expected, reached 1.0262. Around this area, the main intraday resistance zone, the pair found sellers and started to pull back a bit. If prices break this resistance level to the upside, they may find another weaker resistance near the 1.0285 mark before reaching for the LVN. On the other hand, as long as prices remain below the resistance area, the most likely scenario is a continuation of the pullback to retarget the W-1 VAH.
Main areas of intraday support where to look for long trades in the case of a bullish candlestick or short trades in the case of a bearish candlestick: 1.0210, 1.0193-1.0182, 1.0151.
Main intraday resistance areas where to look for short trades in case of bearish candlestick pattern or long trades in case of bullish candlestick pattern: 1.0262, 1.0285, 1.0343.
S&P500, M30
The S&P500 has rallied strongly over the past week and is now close to annual volume resistance zones. From a technical and intraday point of view, the main intraday support zone is the weekly LVN around 4108. As long as prices remain above this area, the most likely scenario is a continuation of the rise until reaching the annual LVN (with minor resistance around 4128 and 4156). . On the other hand, if prices break below 4108, a drop to another weekly LVN near 4078 is expected. In this case, a possible extension could lead the index to W-1 VAH.
Main areas of intraday support where to look for long trades in the case of a bullish candlestick or short trades in the case of a bearish candlestick: 4108, 4078, 4050.
Main intraday resistance areas where to look for short trades in a bearish candlestick pattern or long trades in a bullish candlestick pattern: 4128, 4156-4167.
