The eurogroup meeting today is to decide on the next Greek bailout, with reported comment from this to be in focus, seen as the main interest in a data light day

<p>EUR/USD Range: 1.3079 – 1.3121 Support: 1.3100 Resistance: 1.3125 Euro-dollar closed in New York at 1.3115 after seeing lows in this session of 1.3096 following […]</p>

Range: 1.3079 – 1.3121
Support: 1.3100
Resistance: 1.3125

Euro-dollar closed in New York at 1.3115 after seeing lows in this session of 1.3096 following a ‘buy the rumour, sell the fact’ reaction to the Greek PSI agreement, with the move lower extended by the release of strong US payroll numbers. The rate was marked down to 1.3102 into early Asian dealing as markets reacted to the weekend release of China’s trade data, which showed a larger than expected deficit. The early dip met decent demand sitting ahead of 1.3100 which reversed the rate up to 1.3125, only to meet model and macro fund supply interest which capped, and with the addition of euro-yen sales took the rate through 1.3100 to a session low of 1.3085. Heavy tone remained into Europe with fresh sales extending the corrective pullback to 1.3080. Bids are noted at 1.3100, with stops placed on a break below, with strong demand sitting lower down at 1.3050-1.3040. Resistance remains at 1.3125.

Range: 1.5657 – 1.5690
Support: 1.5660
Resistance: 1.5700

Cable closed in New York at 1.5678, off session lows of 1.5662. The rate was held within a tight range through Asia, trade contained by 1.5658-1.5675, while euro-sterling initially edged to overnight highs of 0.8375, from an opening level around 0.8362, before squeezing down to 0.8355 as it tracked euro-dollar slippage ahead of the European open. The cross holds back above 0.8360 into Europe, while cable extends its recovery highs to 1.5684 on early profit take demand, though moves are viewed as shallow and seen keeping the underlying corrective tone in place. Support seen placed between 1.5660-1.5640, a break to expose stops, which if triggered to open a deeper move toward 1.5625-1.5620 ahead of stronger interest into 1.5600. Resistance noted at 1.5700, a break to open a move toward 1.5715 with talk of sell interest placed between 1.5730-1.5750.
Range: 1,702.64 – 1,713.65
Support: 1,696.40
Resistance: 1,716.00

Gold prices have drifted off in Asia and in tandem with the euro-dollar following China’s weaker trade deficit release over the weekend. The week opened with prices at 1,713.90, and after a brief high of 1,716.90 the metal has slipped back to 1,702.50 with equities softening through Asia. Friday saw the metal fall briefly through the 200 day MA at 1,680 to lows of 1,676.70, following the strong NFP release, but recovered strongly back through 1,700 later. Initial support now at 1,696.40 (100-day MA) and at 1,680 with a deeper move towards 1663.54. Resistance is noted up at 1,716 and 1,727.60, a move higher takes us to 1,739.94.

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.