The all-night discussion marathon pulled by the European officials resulted in a new plea for Greece. The measures have been agreed upon and the new legislation has to pass today, with immediate implementation starting tomorrow. Brussels once again stands out for Greece.
Shifting to the other side of the ocean, the prospects of higher interest in the latter of 2015 (due to the new Greek measures imposed) pushed up the US dollar in detriment of other currencies. Market participants have started already to turn their attention to USA.
The EUR/GBP pair fell Monday morning (referring here to Europe’s time zone) as a result of a minor double top formation. This is stressing the support barrier from 0.7110, slips being expected to reset the support around 0.7070. It remains to be seen.
If we focus on the USD/JPY pair, we might notice a “slight” upturn. The huge 300 pips move raged the rate at 123.50 from Wednesday’s 120.50 reminiscence of Grexit panic. The bearish trend that started in early June, from 125.85, starts to slowly fade away with bullish feelings emerging over the course of the last 5 weeks.
GBP/USD’s comeback since Thursday reached 1.5520, this being previously set as resistance (or support). According to statistics, if prices fail to reach the end of the day above 1.5500, the decline could be as severe as the 1.5330 – 1.5230 area. Taking a look at the intraday prices, the support line is keeping up, the trading range being kept between 1.5500 and 1.5545. The 1.5330 threshold seems to be forming a small support line which, if not breached, it might break out to the upside from our current descending channel.
Greek’s bail out also influenced the gold price. This precious metal fell with 0.32% at 1155, reversing expected fortunes. The trading path cannot be described as linear, more like sideways, on the verge of an uptrend. The uptrend is mainly explained by the fact that gold broke the 1160 resistance, pushing it at 1172.
It seems like for some time now, Greece is setting the pace for worldwide economy. With the resolution offered by the new summit and the acceptance of the shift in the Greek local “ecosystem”, the storm might come to an end and things can fall into a more predictable pattern. As nature, economy cannot exist without chaos, so we can start shifting our attention to Iran. If sanctions on oil exports will be lifted, Iran can and probably will increase the global oversupply of crude on its own, causing new outsets.
