Daily Market Review —13/07/2015
Greece Has 72 Hours to Accept Reforms
International creditors have given Greece time until June 14 to adopt six bills. In case Athens fulfill its obligations, the German parliament will gather on Thursday on the issue of giving German Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble the mandate to negotiate new loans.
After this the Eurogroup will meet and discuss further assistance to Greece. The total amount of aid is 86 billion euros. At this point, the euro will be under pressure; and the price will likely fall to the blue support line on the chart.
Resistance: 1.1150; 1.1215; 1.1275–1.1280; 1.1410; 1.1435–1.1450; 1.1466; 1.1500.
Support: 1.1090; 1.1000–1.0990; 1.0915–1.0900; 1.0885; 1.0815–1.0800.
The resumed downward movement of oil prices has a very strong pressure on the Russian ruble. Key support line is located at 56.00; the immediate target is the 57.00 then 57.50 and 60.00.
Resistance: 57.50; 60.00.
Support: 56.00; 55.00; 53.50; 52.75–52.50; 52.00; 50.00.
S&P500 (Futures SP500 E-mini)
Futures on the broad US stock market opened with a gap down on the background of an agreement not being reached on Greek debt at a meeting of the Eurogroup over the weekend.
In the Asian session, the gap was almost closed, following actively growing markets of China and Japan. The main event of this week is a speech of the Fed’s Chairwoman Janet Yellen on Thursday.
From a technical point of view, the nearest significant resistance level is located at 2080. It is very unlikely the S&P passes it on the first try. We expect the market will go to the area around the 2080 today, and then fall to the bottom of the rose channel.
Resistance: 2080; 2090; 2109–2110; 2122; 2133–2133.50.
Support: 2053–2052; 2034–2033; 2000.
Oil prices continue to decline for two main reasons: negotiations on the Iranian nuclear program entered their final stage on Friday, and the International Energy Agency published a forecast, which projects a decline in demand for oil in 2016 and excess supply. From the technical point of view, the correction is likely completed (break out of the green channel) and the immediate target is located around the 55.00.
Resistance: 59.60–59.65; 63.80; 65.00; 65.40; 66.00–66.35; 66.80–67.00; 70.00.
Support: 55.08–55.00; 54.00; 52.40.