Daily Outlook Friday 10th July 2015
Greece sent its proposals to Brussels late last night while Chinese stocks had their 2nd day of impressive +5% gains following the selloff that took place last week. This caused a rally in EURUSD, AUD, NZD as well as global indices. EURUSD is trading over 1.1100 while JPY has weakened vis a vis the USD and trading 121.85 up 1% from Wednesdays low of 120.40
Greece’s fate will be determined by the Euro-zone officials, as it holds an emergency summit on Sunday to determine if Greece’s proposed plan of “credible reforms” are feasible or not. Meanwhile, investors should pay close attention to the Fed Chief, Janet Yellen’s speech, scheduled later in the day.
Trading quote of the day: “To be a good trader, you need to trade with your eyes open, recognize real trends and turns, and not waste time or energy on regrets and wishful thinking.” – Alexander Elder
USDCAD
Pivot: 1.267
Likely scenario: Long positions above 1.267 with targets @ 1.274 & 1.278 in extension.
Alternative scenario: Below 1.267 look for further downside with 1.264 & 1.261 as targets.
Comment: A support base at 1.267 has formed and has allowed for a temporary stabilisation.
USDCHF
Pivot: 0.9405
Likely scenario: Long positions above 0.9405 with targets @ 0.9515 & 0.957 in extension.
Alternative scenario: Below 0.9405 look for further downside with 0.936 & 0.933 as targets.
Comment: The next resistances are at 0.9515 and then at 0.957.
OIL
Pivot: 52.1
Likely scenario: Long positions above 52.1 with targets @ 54.7 & 55.5 in extension.
Alternative scenario: Below 52.1 look for further downside with 51.4 & 50.55 as targets.
Comment: The RSI is well directed.
DAX
Pivot: 10940
Our preference: Long positions above 10940 with targets @ 11395 & 11500 in extension.
Alternative scenario: Below 10940 look for further downside with 10760 & 10665 as targets.
Comment: The RSI is bullish and calls for further upside.