The Euro summit is taking place today, where heads of states from Eurozone are due to meet regarding Greece’s current agreement with the European Financial Stability Facility (EFSF) which expires on June 30, 2015, in Brussels. Also, the Eurogroup Meetings today are being held in an attempt to reach a deal which would save Greece. EU chief executive Jean-Claude Juncker’s chief of staff said he received a new bailout plan which provides a “good basis for progress”. Giving the fact that the Greek banks registered massive capital withdrawals, Bank of Greece Governor Yannis Stournaras warned senior bankers of a difficult day on Tuesday if no agreement is reached. Likewise, it was taken into account the possibility to keep the banks closed as the measure of capital controls is being implemented (if the situation degenerates).
EURUSD continued the ascending tendency which brought the currency close to the 1.1400 resistance zone. A failure of negotiations would put inevitable pressure on the Euro currency, which risks massive descending episodes during today. The German DAX managed to close the week above 11000 points, but today the Shooting Star pattern (visible on an hourly chart) may send the price well below 10960 points. Until later today, markets could still have hope giving the new bailout proposal.
The American dollar stays weak, weighed down after U.S. debt yields slid. USDJPY marked a lateral movement defined by 122.55 (support) and 123.21 (resistance). An ascendant breakout would bring the currency pair close to 123.60, 123.75 and 123.85. On the other side, a breakdown of the 122.54 – 122.45 support zone may trigger a significant descending episode, which would bring the currency down to 121.87 – 121.47.
USDCAD has been gaining momentum on Friday as the Canadian economy reported news. It looks like inflation made some progress as Core CPI advanced by 0.4% and the CPI increased by 0.6%, but Retail Sales index was published down to -0.1% and Core Retail Sales was as well published to -0.6%. The USDCAD quotation tested the 1.2295 resistance level, while now is located near the support at level at 1.2240. A breakdown would send the price down to 1.2215.
The price of oil has been reacting to the Greek news as trader are waiting for an outcome of the Teheran’s nuclear program talks by the end of June. The WTI quotation decreased down to 59.26, but the new bailout proposal prepared by the Greek side represented a good reason for a rebound. A breakout of 60.10 may send the price higher to 60.26, 60.50 or even 60.87, but we should keep an eye on any negative technical sign as the descending tendency represents the main scenario.