Gold recovered slightly today, hovering around the 1100 level. Crude oil is trading slightly under $48. EURUSD is broadly higher following last week's recovery following the negative US New home Sales data which slipped to the lowest level of 2015, which is also the main reason for the USD weakness we noticed from Friday onwards
Global equities ended last week down, as the commodity bear market continued and the Chinese manufacturing PMI surprised to the downside raising concerns about a significantly weaker Chinese economy. European equities also suffered from weaker-than-expected Eurozone PMIs possibly reflecting Grexit fears. Asian equities continue to be lower into the week.
Looking ahead, Germany will release IFO business Climate index. In the US, the June figures for durable goods orders are due for release. Focus this week will primarily be on Wednesday's FOMC meeting, the rhetoric is expected to turn more hawkish amid the recent significant improvement in US economic figures and with international risk factors (Grexit) diminished.
Trading Quote of the Day:
“If you are not willing to learn, no one can help you, if you are determined to learn, no one can stop you”
Green lines are resistance, Red lines are support
EURUSD
Pivot: 1.0965
Likely scenario: Long positions above 1.0965 with targets @ 1.1035 & 1.1085 in extension.
Alternative scenario: Below 1.0965 look for further downside with 1.092 & 1.087 as targets.
Comment: The RSI is well directed.
GBPUSD
Pivot: 1.5535
Likely scenario: Short positions below 1.5535 with targets @ 1.5495 & 1.5465 in extension.
Alternative scenario: Above 1.5535 look for further upside with 1.557 & 1.561 as targets.
Comment: Intraday technical indicators are mixed and call for caution.
AUDUSD
Pivot: 0.734
Likely scenario: Short positions below 0.734 with targets @ 0.7255 & 0.723 in extension.
Alternative scenario: Above 0.734 look for further upside with 0.738 & 0.7415 as targets.
Comment: Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
