Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN on market opens. There will be many possible scenarios shown so it is key to work off major levels and higher lows/lower highs once the price action unfolds.
PROCESS IS KEY….DEFINE LEVELS – MARK EXPECTED PRICE ACTION – TRADE THE SETUPS
All prices refer to the CFD pricing from the charts below off TD365.com. Opening times (AEST) are 10am SPI/N225, 11:15/30am HSI, 4/5pm DAX and UK100 and 10:30/11:30pm DOW and USTech100.
ASIAN MARKET SNAPSHOT FOR WEDNESDAY 10/08/22
Asian Markets were weaker as HSI, Nikkei and the ASX200 moved lower from the opens. Seems that there was some risk aversion trading following on from the US session, ahead of the CPI release. It will be interesting to see how the CPI is taken….I expect that a ‘stronger than expected’ number will push risk assets lower and safe havens higher while a weak number could support share markets and indexes. The problem still remains the cooling US economy while interest rates remain elevated. US CPI at 10:30pm AEST
Market Price Action was very weak in the Asian session so we may see more of the same in European trade ahead of the CPI…then it will depend on the number released!!
The DOW edged lower during the Asian session but held up off 32705 which is the US market lows. Watching to see if we test and hold 32705 ahead of the CPI release. Expect a choppy start to the European session as instos flush levels and both sides of the markets. The US Tech 100 was much the same as the DOW holding up off US session lows. Expecting the same action and it will be interesting to see how the market moves the Nasdaq after the CPI. The DAX Index grinded lower in Asian trade and I would expect a flush higher into 13550 to start the session. Like Asian Indexes, we may see a risk off tone ahead of CPI. UK 100 Index has held above 7470 into the start of European trade. Watching to see if we flush up and then selloff ahead of the CPI. I do not expect to see ‘risk on’ ahead of CPI.
Cryptos also moved lower in Asian market trade in a risk off tone. Not even crypto traders are willing to be long risk into what may be a volatile economic release. Bitcoin is holding up off 22870 but bias down while Ethereum is holding up off 1673 but also bias down for now. Expecting to see a squeeze lower on both to clear out more buyers.
Spot Gold moved lower in Asian trade down off resistance at 1795. Expecting there may be more of a squeeze down as longs cover and go back on the sidelines ahead of CPI and a potential spike into the USD. USD Index chopped around below the resistance at 106.415 which I expect will hold into the CPI release.
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US Tech 100 Index
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