There is another EU summit scheduled for the w/e and this may bring a resolution to the Greek debt crisis, one way or the other, which may in turn help to provide some trading direction clarity. We can only live in hope otherwise this saga could drag on until July 20th when Greece faces yet another debt deadline. Despite all of the recent volatility and seemingly chaotic moves on many instruments, think China stock indices here, some are trading quite orderly and with decent respect for key technical levels. Gold, Silver and the USD/JPY are perfect examples of this with their respect for key support levels in overnight trade.
EURX daily: the index is still triangle bound. The w/e EU summit just might provide the news to trigger a breakout from this range; one way or the other:
USDX daily: has failed to hold onto gains which doesn’t bode well for the index. It is back down at the recent trend line and I’m watching for any weekly close back within this triangle to prolong any potential ‘Bull Flag’ breakout:
FX Ichimoku Clouds: the recent FX index ‘risk off’ alignment was short lived as both indices are back trading within their daily Cloud. Note also how the daily Clouds are fairly horizontal….further evidence of the recent lack of trend:
USDX daily Cloud:
EURX daily Cloud:
Silver daily: no daily close below $15:
Gold daily: price has bounced, yet again, off the major $1,145 support level and note also the bullish reversal Hammer-style candle:
Forex: There is the GBP interest rate announcement tonight but most traders will probably be focused on the outcome of the w/e EU summit. I continue to urge caution here as any Greek-debt deal may trigger a significant ‘risk on’ style relief rally.
E/U daily: still triangle bound. Price dipped below the trend line on the 4hr chart but not so for any daily close:
E/J daily: the $134 is acting as decent support for now:
A/U daily: has enjoyed a reprieve today with better than expected employment data:
A/U 4hr: any pull back may test the broken 0.755 level but a 61.8% pull back to the 0.77 region could evolve here too:
AUD/NZD monthly: have we had enough of a pullback here? I’m not sure but perhaps not:
A/J daily: will this pull back to test the broken trend line and then continue south? I have no idea but the w/e EU summit might help shape the result here as any Grexit would most likely continue to fuel Yen strength:
Cable daily: I’m keeping an eye on the 1.55 level:
Kiwi daily: I’m watching for any relief rally here:
U/J daily: Yen strength has pushed this lower but note how price respected the recent support trend line. The w/e EU summit might determine the next move here as any Grexit, as noted above, would probably continue to fuel Yen strength:
GBP/JPY daily: the 50% fib has kicked in support here for now. The w/e EU summit might determine which way this heads from here:
Loonie daily: I still expect the 1.30 level to be tested here:
GBP/AUD monthly: price has pulled back below the key 2.07 level and we may see choppiness continue here to help start a ‘Handle’ for a potential Cup ‘n’ Handle pattern:
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