July (WK2) Market Update

After the vote from the Greek people in complete disagreement with the upcoming austerity programs, we were looking forward to see the economic and political reactions to the issue. As expected, all EUR crosses – without no clear decision from the Eurogroup – stayed in the range from the past few weeks.

Still on the currency market, the Australian dollar showed some weakness and finally broke the support level from the last months at 0.76 and is now looking to allow some renewed strengths along the AUD crosses. JPY still very indecisive while the British sterling seemed to be losing ground for the beginning of the week but eventually picked up by the end of it. As normal, all the GBP crosses showed the same pattern. As for the New Zealand dollar, it is still looking weak and very interesting to trade.

As for as the Indices, after the alerts and panic from China regarding the complete exit from all major investors as seen on the charts, the beginning of the week reinforced the already heavy pullback from April. Nevertheless, there was some big recovery for the last 2 days of the week where the DAX closed above the price from the previous 2 weeks with all the main European markets following. As for the American Indices, it was one of the most indecisive weeks of all time… Almost exactly the same close on Friday as it opened on Monday after some very strange moves all week with all the daily volatility showing the same price range. As for the Asian indices, Hang Seng and Nikkei heavily influenced by the Chinese stock market took a plunge but did recover half of the losses by the end of the week.

On the commodities side, Gold and Silver are still holding around the support level from the last months. As for Oil, after breaking the 56 support level, price kept going down and a small pullback was seen by the end of the week. Now looking more like a trend behaviour than anything else…

 

 

Best Trades this week

  1. AUDNZD (Daily Chart) – Reversal short – 02.07.2015 – After hitting a major resistance level at 1.13, this pair showed us other different signals that altogether made us take the trade. A fake break to the upside on the high test bar on the 2nd along with the divergence from the stochastic oscillator were all the reasons we needed. Currently at around +2,5% profit.

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  1. GBPAUD (Daily Chart) – Continuation long – 01.07.2015 – The bounce on the moving average was once again the excuse to place another position. The clear price action introduced the new phase 1 with the trend and is now at around +3% in profit and showing a new potential opportunity.

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EFFECT OF THE NEWS LOOKING FORWARD

Next week will start with added indecision as we’ll have the EU economic summit over the weekend and yet another Eurogroup meeting on Monday that might shed some light into the Greek debt issue and therefore all the Eurozone.

This will also be a high intensity week due to all the news coming out:

  • Tuesday there we will have the ECOFIN meeting which will be potentially still centred on the Greek debt:
  • Wednesday will start with the press conference from the Bank of Japan but the focus will be on the testimonial from the President of the Federal Reserve at the Semi-annual Monetary Policy Report. It is obviously expected to have some comments on both the EUR policies and the interest rates in the US;
  • On Thursday another press conference from the European Central Bank…