Daily Market Review —14/07/2015
Today Is the Last Day to Adopt Laws On Reforms
Today is the last day for Greece to legislate massive changes, the Greek PM agreed in talks with creditors in order to obtain financial assistance under the European Stability Mechanism (ESM). The Greek Parliament has to approve laws concerning the reform of tax and pension systems. Also today, investor’s attention will be drawn to the Euro-Zone ZEW Survey (Economic Sentiment) at 9:00 (GMT), Euro-Zone Industrial Production at 9:00 (GMT) and US Retail Sales at 12:30 (GMT).
Technically, the pair found its support at 1.0970; breaking through it will open the way to the 90th figure.
Resistance: 1.1060–1.1070; 1.1215; 1.1275–1.1280; 1.1410; 1.1435–1.1450; 1.1500.
Support: 1.0970; 1.0915–1.0900; 1.0885; 1.0815–1.0800.
The breaking of the upper limit of the violet channel and consolidation above is likely to determine the end of the correction that started on June 8 and the resumption of the uptrend with the immediate goal at 57.00 and then at 57.50.
Resistance: 56.60; 57.00; 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)
The main reason for the growth of the US stock market yesterday was agreement reached by the Eurogroup and Greece for financial assistance of 86 billion euros for three years in exchange for reforms. The market also was supported by actively growing Asian markets. The S&P has added more than 1% to its value.
From a technical point of view, the market correction is overdue. Resistance is located at 2094; the likely immediate target is at 2073.
Resistance: 2094; 2109–2110; 2122; 2133–2133.50.
Support: 2073; 2053–2052; 2034–2033; 2000.
Gold continues to fall due to the relative resolution of the Greek issue and the overall strengthening of the US dollar. Investors are not considering gold as a safe-haven asset; therefore, demand for the metal remains extremely low. Key support is located at 1147.15-1147.00; if the market falls below, it would open the way for a 5-year minimum at 1131.50.
Resistance: 1159–1160; 1175; 1188.00; 1200.00; 1205.70; 1232.00; 1240.00.
Support: 1151–1150; 1147.15; 1143; 1131.50.