Daily Market Review — 24/06/2015
US GDP Report Will Rule the Day
The Market experienced the strengthening of US dollar across all USD currency pairs. Positive sentiment of European stock markets, the breakthrough in talks between Greece and its creditors as well as ECB quantitative easing have left no chance for EUR/USD growth.
“Right now there is a discussion among the technical teams. It is obvious that they will raise objections on some points but we are moving forward on these elements, we are closer than ever,” Greece’s main negotiator Euclid Tsakalotos said yesterday.
The market’s attention today will be focused on the meeting of the Eurogroup at 9:00 GMT and a report on US annualized GDP, which is expected to be improved from the –0.7% to –0.2%.
From the technical point of view, it seems like a correction from yesterday’s growth to the area around 1.1270 is quite possible with the resumption of further decline of the pair.
Resistance: 1.1270; 1.1410; 1.1435–1.1450; 1.1466; 1.1500; 1.1750.
Support: 1.1150–1.1130; 1.1050; 1.0915–1.0900; 1.0885; 1.0815–1.0800.
The USD/RUB has been trading in a range between 52.50 and 54.50 for the fifth consecutive day. Expectations regarding US oil inventories caused a decline in support for the Russian currency yesterday. Upon release of the data the resumption of growth of the pair is very likely. Passage of resistance line at 54.50 will open the way to 57.00 and then on to 60.00.
Resistance: 54.50; 55.05; 57.05; 57.40–57.50; 60.00.
Support: 53.50; 52.75–52.50; 52.00; 50.00.
S&P500 (Futures SP500 E-mini)
Before the release of US GDP for the first quarter today at 12:30 GMT, the market is likely to move in a narrow range. It is expected that today’s US stat data will outperform previous result.
In this case, it can be perceived by the market as another signal for the Fed that US economy is improving and as a result as a reason for earlier monetary tightening, which will have a negative impact on the stock market.
Resistance: 2122; 2133–2133.5.
Support: 2110; 2100; 2097; 2070; 2068.50–2068; 2050; 2033; 2000.
The gold market experienced permanent sell-offs, caused by stabilization of the situation around the Greek debt and the overall strengthening of the US dollar across the world.
We expect a further decline, if any positive news comes from Europe or the United States. Breakthrough of the support level around 1176.00–1174.00 will serve as a driver for the downward movement to the yellow support line.
Resistance: 1188.00; 1200.00; 1205.70; 1232.00; 1240.00.
Support: 1176; 1175.00–1174.50; 1170.00; 1163.00–1162.70; 1150.00; 1143.00; 1131.50.