23 June, 2015
The single European currency is currently trading at about 1.1275, and the news that Greece and creditors have reached agreement about the aid program has not supported the EUR/USD. The conditions of the agreement are yet unknown, but European leaders said many times that they regarded an effective crisis exit plan as a mandatory condition for providing the next tranche. Greece's future in the EU was at stake at yesterday's meeting. Merkel herself asserted that she would make every effort to maintain the integrity of the EU. Reportedly, Greek authorities would increase taxes and cut down on social benefits in order to eliminate the budget deficit, which might cause social unrest.
Today, we are waiting for business activity statistics for France, Germany and eurozone. Forecasts are contradictory, and a surge in market volatility is expected.
Support and resistance
The nearest resistance level is 1.1292 (1/8 Murray). A level of 0/8 Murray (1.1230) serves as support.
Go short after a level of 1.1230 is broken and place protective orders near a level of 1.1250 with a target at 1.1169
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...