The EURUSD currency pair moved its support and resistance levels, thus the local maximum is situated near the 1.0900 level, while the local minimum is set at 1.0862. The Euro has become a favorite for traders together with the new situation in Greece. Setting a new formula of government, where Tsipras allies with his main pre-election enemy, Samaras, to carry the very heavy burden of pushing forward the current agreement with international lenders. Besides that, the Euro has received support from Germany, where an ECB’s official voiced doubts about the useless of QE and allusions to the risk of creating speculative bubbles.
Today is due to be released the NFP report together with the Unemployment Rate and the Average Hourly Earnings. There is visible the risk of this data to disappoint the market, but the recent solid economic growth may help numbers stay on the surface. We should be attentive to possible anticipatory reactions of the American dollar and capital markets.
Likewise, today we will experience a bank holiday in Australia, Switzerland, Germany, Great Britain, Canada and New Zealand. Under these conditions, the market is less liquid and speculators become a more dominant influence where the volatility can be even very low, even very high. The situation will start getting to normal on Monday when the Canadian market will be unlocked, but most probably on Tuesday the market may develop delayed reactions.
Oil quotations lost ground yesterday, but seems determined to recover the losses. Prices had a solid episode of decline after a preliminary pact between Iran and global powers on Tehran’s nuclear program has been agreed. Even so, sanctions against Iran will be detached under a future deal by June 30. Until then, the oil may be under pressure and sensitive to every news related to this deal, while the possible slowdown in the American production may increase quotations.
In the medium term, oil quotations may develop range movements. In terms of the evolution of Brent, the local support is situated at 54 dollars, while the resistance holds at 60 dollars. The WTI uses the 41.10 dollars support and the 52.50 resistance area may hold up for a while.
Another ticking bomb to be watched is the Australian dollar, which recently depreciated considerably in relation to the American dollar. Basically, the descending trend seems to have been resumed as AUDUSD is staying on the 0.7550 support level. A breakout at this point may cause another massive depreciation episode. But, before this scenario to become reality, it would be advisable to consider a correction. The prospects for a decrease in interest rate are considerable increasing, while the Australian economy is being hurt by the dropping prices of raw materials and the economic slowdown China and Japan.
