Daily Market Review —23/06/2015
Jean-Claude Juncker Expresses Confidence
in a Positive Outcome of Talks this Week
Yesterday, at the emergency EU summit, Greece submitted a new proposal and has agreed to make many concessions to international creditors. The head of the European Commission, Jean-Claude Juncker expressed his confidence in positive outcome of the talks with Athens this week.
Solving the problem of the Greek debt is probably already placed in the price, while the single currency was pressured by news that the European Central Bank once again increased the amount of funding of Greek banks under the ELA.
On the technical side of the analysis, the passage of the support line at 1.1250 and move beyond the boundaries of the violet channel may allow the US dollar to strengthen further with the target at 1.1150.
Resistance: 1.1435–1.1450; 1.1466; 1.1500; 1.1750.
Support: 1.1255–1.1250; 1.1150; 1.1050; 1.0915–1.0900; 1.0885; 1.0815–1.0800.
One of the main reasons for the strengthening of the Russian ruble in recently is a demand for the Ruble because of exporter tax payments, the peak of which falls on June 25th. After that, the strengthening of the US dollar is very likely with a mid-term target at 60.00.
Resistance: 54.40; 55.05; 57.05; 57.40–57.50; 60.00.
Support: 52.75–52.50; 52.00; 50.00.
S&P500 (Futures SP500 E-mini)
The main driver for the growth of the US stock market is a positive data from Europe around Greek debt.
Also investors’ attention will be focused on Durable Goods Orders report at 12:30 GMT.
The mood in the market remains optimistic and hike to the historic maximum of the index at 2033.5 in the near future looks very likely.
Resistance: 2122; 2133–2133.5.
Support: 2110; 2100; 2097; 2070; 2068.50–2068; 2050; 2033; 2000.
In the medium term, the focus of market will remain on Iran nuclear program talks June 30. A positive outcome for the meeting will result in lifted sanctions, which will lead to even higher oil supply in the market.
The Saudi Arabian Minister of Petroleum and Mineral Resources said recently that the country could increase production quotas, if it will be needed.
Yesterday’s growth in oil prices was caused by a divergence (indicated in red on the chart). It appears now is most likely scenario is a resumption of the downward trend with the target at 60.00.
Resistance: 63.40; 65.00; 65.40; 66.00–66.35; 66.80–67.00; 70.00.
Support: 62.10–62.00; 61.50–61.40; 61.00–60.90; 60.00.