The Greek government has submitted economic reform proposals to try to secure a further bailout from its creditors, eurozone. The measures include tax rises, pension reforms, privatisation and spending cuts, worth up to €13 billion according to the Guardian. On Friday, the Greek parliament will vote on Mr Tsipras' proposals. In exchange for the adoption of the austerity measures, Greece could receive approximately €50 billion in short-term funding needed to avoid bankruptcy. The plan will be then considered by eurozone finance ministers on Saturday, and by EU leaders at a summit in Brussels on Sunday. Following the events, the euro gained in early trading on Friday, as investors seem optimistic that a bailout deal will finally be reached. On Thursday, the dollar remained higher against most currencies, even after data initial jobless claims for the week ending July 4 increased by 15,000 reaching the highest level since February when analysts had expected a drop by 7,000. For today, Canada is to publish its monthly employment report while Fed Chair Janet Yellen is to speak at an event in Cleveland.
The euro recovered sharply along with the DAX on Friday, as the Greek government has managed to submit economic reform proposals some hours before its deadline and ahead of Sunday's summit of EU leaders in Brussels where investors appear optimistic that a deal could be reached. The EUR/USD traded close to 1.11 level receiving additional support from weak employment data from the U.S., as the Labor Department announced initial jobless rising to the highest level since February. Investors will more likely remain on the sidelines on Friday waiting for the outcome of the Sunday EU summit in Brussels, while later in the day, a closely watched speech by Fed Chair Janet Yellen is due to take place in Cleveland.
Pivot: 1.105
Support: 1.105; 1.102; 1.099
Resistance: 1.115; 1.12; 1.126
Scenario 1: Long positions above 1.105 with targets @ 1.115 & 1.12 in extension.
Scenario 2: Below 1.105 look for further downside with 1.102 & 1.099 as targets.
Comment: The RSI is bullish and calls for further advance.
OIL
Crude oil prices recovered by more than 2% on Thursday, as talks on Iran's nuclear program missed another deadline and are to resume in Vienna causing a delay in lifting sanctions from Iran. Investors are also watching closely on China, the world's top importer of crude, for further indications related to the health of the country's stock market. Chinese stocks ended a five-day losing streak after the country's securities regulator banned major stockholders with holdings worth more than 5% from selling their stakes for the next six months. Energy traders are also looking forward to the release of oil services firm Baker Hughes (NYSE:BHI) weekly U.S. rig count on Friday for further indications on supply levels throughout the nation. Last week, the firm said U.S. oil rigs rose by 12 to 640, ending a 29-week streak of weekly declines.
Pivot: 52.1
Support: 52.1; 51.4; 50.55
Resistance: 54.7; 55.5 ; 56.4
Scenario 1: Long positions above 52.1 with targets @ 54.7 & 55.5 in extension.
Scenario 2: Below 52.1 look for further downside with 51.4 & 50.55 as targets.
Comment: The RSI is well directed
DOW JONES
U.S. stocks moved higher on Thursday rebounding from a massive sell-off the day before, supported by gains in crude oil prices and an improved outlook of financial crises in Greece and China. Stocks in the Financials, Health Care and Energy industries led the way, each gaining at least 0.45%. The Dow ended the day 0.19% higher with the top performer being The Travelers Companies Inc (NYSE:TRV) which gained 1.55%, while the worst performer was Apple (NASDAQ:AAPL), which fell by 1.85%. U.S. stocks had surged above 1% earlier Thursday as Chinese stocks ended a five-day losing streak after the country's securities regulator banned major stockholders with holdings worth more than 5% from selling their stakes for the next six months.
Pivot: 17800
Support: 17465; 17355; 17245
Resistance: 17800; 17890; 17981
Scenario 1: Short positions below 17800 with targets @ 17465 & 17355 in extension.
Scenario 2: Above 17800 look for further upside with 17890 & 17981 as targets.
Comment: The break below 17800 is a negative signal that has opened a path to 17465.
APPLE
The tech giant's shares moved deep into negative territory in afternoon trading ending the day lower by more than 2,1%. The share received strong pressures by China's recent stock crisis and by a UBS note on Thursday pointing out that China has provided over half of Apple's recent growth in revenue. According to FactSet, China makes up about 16.2 percent of Apple's total revenue. However, the Chinese stock market rebounded on Thursday after China started implementing new measures, including restrictions on short selling.
Pivot: 134.4
Support: 118.5; 113; 103.7
Resistance: 134.4; 145.3; 152.5
Scenario 1: Short positions below 134.4 with targets @ 118.5 & 113 in extension.
Scenario 2: Above 134.4 look for further upside with 145.3 & 152.5 as targets.
Comment: The RSI is bearish and calls for further downside. The daily RSI is capped by a declining trend line.