Daily Market Review —15/07/2015

Daily Market Review —15/07/2015

Today Is the Last Day For Greece to Adopt Laws

Forex

EUR/USD

1507eurusd

Today is the last day for Greece to legislate massive changes, as the Greek PM agreed in talks with creditors so he could obtain financial assistance under the European Stability Mechanism (ESM). US Retail Sales came out yesterday and turned out to be much worse than expected. The initial reaction was strong growth for the EUR/USD, but the market then returned to the original position. Today, the focus of investors will be on the speech of the Fed’s Chair Janet Yellen at 14:00 (GMT), in which, once again, they will try to get any hint regarding the start of the rate raising cycle.

Resistance: 1.1060–1.1085; 1.1215; 1.1275–1.1280; 1.1410; 1.1435–1.1450; 1.1500.

Support: 1.0970–1.0960; 1.0915–1.0900; 1.0885; 1.0815–1.0800.

USD/RUB

1507usdrub

Yesterday the pair broke through the upper limit of the violet channel, reaching the blue resistance line. Technically, we expect further growth with the immediate target at 57.50.

Resistance: 57.00; 57.50; 60.00.

Support: 56.00; 55.00; 53.50; 52.75–52.50; 52.00; 50.00.

Stock Market

S&P500 (Futures SP500 E-mini)

1507SP500

Yesterday’s growth of the broad market index was caused by the release of US corporate earnings for the second quarter which turned out better than expected. The growth was helped along by the weakening of the US dollar against unexpectedly bad data on Retail Sales. Today, the market waits for Janet Yellen’s speech.

From the technical point of view, the market is ready for correction; there is a double divergence (indicated in red on the hourly chart), so in the near future the downward movement with the target of 2090 is likely to happen.

Resistance: 2107; 2109–2110; 2122; 2133–2133.5.

Support: 2090; 2073; 2053–2052; 2034–2033; 2000.

Commodities

Brent Oil

1507Brent

Yesterday, an agreement on the Iranian nuclear program was finally reached. Saudi Arabia informed OPEC it will be increasing its production quotas to record levels in the history of 10.6 million barrels a day, which is seen as preparation for the Iranian entrance of the market and as a sign of willingness to keep their positions. Thus, in the medium and long term it is expected oil prices to significantly decrease.

Resistance: 58.80; 59.60–59.65; 63.80; 65.00; 65.40; 66.00–66.35; 66.80–67.00; 70.00.

Support: 56.40; 55.08–55.00; 54.00; 52.40.