Daily Market Review – 09/06/2015
Greece receives a payment reprieve
The EUR/USD pairing has been positively trading in Asia. Yesterday’s appreciation of the euro was due primarily to the Athens’s declaration of consent to compromise in negotiations with European creditors in an attempt to settle all issues before June 30th as negotiations continue, Greek and German finance ministers are scheduled to meet today. At the G7 summit, Chancellor Angela Merkel said that the agreement will be reached, and there isn’t a lot of work left. The Wall Street Journal reported that international creditors – the European Commission, the ECB and the IMF last week proposed an extension to the financial aid program until the end of March 2016.Rising yields of German government bonds also contributed to the strengthening of the single currency. At the moment, the red resistance line is preventing further growth by the pairing, the passage of which will give potential for increased upward movement. Failure to overcome the resistance may cause a correction below the 13th figure.
Resistance: 1,1345; 1,1380; 1.1450–1,1470; 1,1500.
Support: 1,1300; 1,1270; 1,1050; 1,0915—1,0900; 1,0885; 1.0815–1.0800.
The USD/RUB pair opened a gap down. The graph clearly shows the figure of a technical analysis of the “head and shoulders” (painted in red on the chart), with a line of “neck” at the level of 55.50. Securing below «neckline» will signal to sell with immediate goals at 55.00 and 54.50. Such movement could signal a correction of growth since May 19. A Russian deal with Iran for the sale of crude oil also supported the ruble. Sales of Iranian oil by Russian traders will be implemented on the verge of profitability.
Resistance: 57,05; 57,40–57,50; 60,00; 63,00–64,00; 71,00.
Support: 55,50–55,40; 55,00; 54,50; 52,00; 50,00.
S&P500 (Futures SP500 E-mini)
The wide market index has continued its decline against the backdrop of expected interest rates raises. Passage of support at 2086 provided the impetus for further falls, but the approach to 2076 was marked by numerous buyers. Passage of support in 2076 will break numerous stop-losses, which will open the road to 2050.
Resistance: 2086; 2093; 2100; 2116; 2120–2122; 2133–2133,5.
Support: 2076; 2050; 2033; 2000.
Crude Oil (Brent)
WTI crude oil rose by 0.6% in New York based on expectations of a reduction in oil shale mining contributing to the elimination of excess raw materials in the United States. Production at the hard-to large deposits of oil in the US will decline by the end of July to the lowest level since January, said the Energy Information Administration on Monday. According to a survey conducted by Bloomberg, oil reserves in the United States could reduce the sixth consecutive week amid refinery preparations for the summer increase in demand for fuel. Today’s technical picture shows good levels of potential sales and the near future it is not expected to yield significant news. The first significant support is at 62.40. Further support will be the top line of the violet channel. Strategic goal-60.00.
Resistance: 63,15; 63,35; 64,00–64,05; 65,35; 65,80.
Support: 62,45–62,40; 61,50–61,40; 61,00–60,90; 60,00.