2 July, 2015
Yesterday, during the trading session, the European currency continued to fall, losing 94 points, and reached the level 1.1054 by the end of the day. Greek debt crisis still deeply affects the euro even though Alexis Tsipras, Prime Minister of Greece, is now ready to accept some of bailout conditions proposed by the country's creditors. The market awaits the upcoming weekend vote by Greeks on their country's fate.
The US dollar is strengthening against the major currencies after ADP Employment Report. The figures were significantly higher than expected. The number of employees increased by 237 000.
Close attention is to be paid to the publication of the US microeconomic statistics for June. In particular, Unemployment Rate and Nonfarm Payrolls are released. Unemployment Rate is expected to decline to 5.4%. The number of new jobs should be 230 000, which is 17.9% off from the previous level.
ECB Monetary Policy Meeting Accounts, published today, could shed light on recent decisions made by the European Central Bank.
Support and resistance
The price has not reached the lower line of the Bollinger Bands indicator, therefore, in the short term, it continues to fall.
MACD indicator also confirms the downtrend. The histogram is in the negative zone, below its signal line.
The nearest support level is 1.0954 (local minimum).
The nearest resistance levels are 1.1277 (this week’s maximum), 1.1400 (psychologically important level).
Open short positions when the level 1.0950 is broken through with the target at 1.0890 and stop-loss at 1.0980.
Consider long positions when the level 1.1277 is broken through with the target at 1.1340 and stop-loss at 1.1250.
On the 4-hour chart, the pair is trading near the level of 15.32 (23.6% correction). The price is supported by the 38.2% fan line, directed up, and the level of 15.05 (38.2% correction)...
Since the beginning of this week, the pair continues strengthening amid some reduction in anxiety on the market. The Dollar was supported by data on Retail Sales that came out in the US on Friday. In January, the index grew by 0.2% that was slightly better than forecasts of economists...
Since the middle of the previous week, the price of Brent crude oil continues growing amid weakness of the US Dollar. In addition, the price is supported by expectations of the reduction in output by major world producers...
On the daily chart, the pair is trading just above the lower MA of Bollinger Bands. The price remains below the EMA130, EMA65 and EMA14, all directed down. The RSI is failing to break out from the oversold zone as it tested its resistance at 32 mark two times last week...
On Thursday, the price of gold fell to its 5-year lows. The Bearish trend accelerated amid macroeconomic statistics form the US than strengthened expectations of an interest rates hike on the US in December...
The price remains under pressure amid strengthening US Dollar that was significantly supported after the publication of strong NFPR data in the US that substantially increased chances of an interest rate hike in December...
On the 4-hour chart, the price is trading in the area of 48.10 which is seen as a particularly strong level as 23.6% Fibonacci both for the short-term and medium-term trends have concentrated in the area of 48.10-47.80...
At the end of last week, the price of Brent crude oil strengthened moderately, being supported by the weakness of the US dollar which failed to hold its positions, gained after the recent Fed meeting...
Last week the price of gold significantly grew. The pair remains under pressure amid concerns on the markets that the Fed will refrain from an interest rate increase before the end of the year...
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