Euro retains a buoyant tone after the passage of the two Greek austerity-related votes and ECB President Jean-Claude Trichet’s repeated comment of ‘strong vigilance’

<p>The focus today remains on European releases. GBP/USD Range: 1.6008 – 1.6095 Support: 1.6000 Resistance: 1.6100 Sterling closed in New York at 1.6052, off recovery […]</p>

The focus today remains on European releases.

Range: 1.6008 – 1.6095
Support: 1.6000
Resistance: 1.6100
Sterling closed in New York at 1.6052, off recovery highs of 1.6095 after the rate was pressed down from Asian highs on Thursday of 1.6118 to European lows at 1.5973. The rate squeezed down to 1.6006 as risk in general was sold off in reaction to the release of weaker-than-expected Chinese PMI data. The rate recovered in tandem with euro-dollar, marking Asian highs at 1.6066 into Europe, with Europe taking it on to 1.6074. A break of this level will expose that recovery high at 1.6095. Offers noted between 1.6095/00, a break to open a move towards 1.6118 with offers to 1.6120. Above here, the rate can push towards 1.61335 ahead of 1.6155. Support at 1.6000 ahead of 1.5970.
Range: 1.467 – 1.4553
Support: 1.467
Resistance: 1.4553
Euro-dollar closed in New York at 1.4502, off extended recovery highs of 1.4538. The rate initially edged to an early high of 1.4512, before profit-related selling emerged to squeeze the rate down to 1.4467. Recovery to 1.4485 was quickly knocked back to retest the earlier low. However, the dip again attracted decent demand, with the rate lifting back towards 1.4500 and dipping to 1.4485 before attracting stronger demand that took the rate on to session highs of 1.4526 ahead of the European open. Offers in place towards 1.4555; a break of 1.4560 opens a move towards 1.4600. Support remains at 1.4467, then at 1.4448 ahead of 1.4430.

Range: 1.497.00 – 1.502.70
Support: 1.490.00
Resistance: 1,514.00


Both gold and silver slipped lower yesterday as the second positive Greek vote led to a return of risk, buoying equities and weakening the dollar. Safe haven demand for the metals waned, along with some end-of-the-month, quarter squaring up of longs which weighed on the metals. Gold slipped to 1,498.80 from earlier highs of 1,514.00, while silver was down to 34.45 from 35.14. The metals opened in Asia at 1,500.70 and 34.69 respectively and have both eased back this morning. Gold slipped to 1,497.40 before settling around 1,499.00, while silver was marginally lower at 34.49. Support for gold is at Monday’s low of 1,490.80 and at $34.05 for silver. Resistance is at 1,514.10 and 35.14.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.