Greece and its Eurozone creditors failed to reach an agreement during a Euro group meeting on Thursday. The lack of progress was seen as a "strong signal" for the country to "engage seriously in negotiations," according to the European Commission's vice president for the euro and social dialogue Valdis Dombrovskis. In the U.S., stocks received a strong boost with the Nasdaq reaching all-time highs, while the dollar was pressured by the Fed's statement regarding the fragile economy and the risk of higher interest rates while deciding to leave them unchanged for another month. Thursdays mixed data from the U.S. failed to cover losses for the dollar. Despite the fact that jobless claims fell and factory activity expanded at the fastest rate in six months, weakness in inflation managed to maintain the dollar under pressure. The Swiss National Bank did not proceed with any interest rate changes and stated that it is prepared to take action to weaken the "overvalued" franc. For today the U.K. is to release a report on public sector borrowing and Canada will be ending the week with data on consumer inflation and retail sales.
The euro continues to rise, posting small gains against the dollar on Thursday and reaching one month highs, still supported by the comments by the Federal Open Market Committee on Wednesday that indicate low interest rates will remain for a considerable time period. After reaching one month highs the single currency retreated in the afternoon, as a tense meeting of euro zone finance ministers in Luxembourg ended without a deal between Greece and its international creditors. Earlier this week, more than €2 billion in deposits had been taken out of banks throughout Greece, highlighting the increased possibility of a Greek default. For today, Eurozone will release it's current account statement while Eurozone Finance Ministers meetings will continue.
Pivot: 1.133
Support: 1.133; 1.128; 1.1205
Resistance: 1.145; 1.15; 1.154
Scenario 1: Long positions above 1.133 with targets @ 1.145 & 1.15 in extension.
Scenario 2: Below 1.133 look for further downside with 1.128 & 1.1205 as targets.
Comment: A support base at 1.133 has formed and has allowed for a temporary stabilisation.
OIL/USD
Crude oil prices posted gains on Thursday, as the dollar tumbles after dovish comments by the Fed and as U.S. crude inventories appear to be falling steadily over the last month after the start of the summer driving season. Energy traders await Friday's U.S. weekly rig count from oil services firm Baker Hughes (NYSE:BHI) for further indications on U.S. supply levels. Last week, the U.S. oil rig count fell by seven to 635, its lowest level since August, 2010. Elsewhere, Venezuelan oil minister Asdrubal Chavez indicated this week that he anticipates that the oil market will stabilize at some point this year. Venezuela has reversed its output strategy to align itself with Saudi Arabia after previously supporting a cut in production.
Pivot: 59.4
Support: 59.4; 58.85; 58.23
Resistance: 61.4; 61.8; 62.4
Scenario 1: Long positions above 59.4 with targets @ 61.4 & 61.8 in extension.
Scenario 2: Below 59.4 look for further downside with 58.85 & 58.23 as targets.
Comment: The RSI is mixed.
DOW JONES
U.S. stocks continue to surge on Thursday, amid increased possibility of a delayed interest rate hike by the Fed, while recent weakness in the dollar gave a significant boost in multinational companies. Lack of progress in negotiations between Greece and its creditors is adding some pressure on prices, however, it does not appear to affect investor optimism for the time being. With all 30 components on the Dow closing higher on Thursday, the top performer on the Dow was 3M Company (NYSE:MMM) which rose by 1.70% while the worst performer was Caterpillar Inc (NYSE:CAT), which gained 0.22%. Markets will now be focusing on next week's data from the U.S. including durable goods orders, new home sales, personal spending and consumer sentiment.
Pivot: 17915
Support: 17915; 17830; 17735
Resistance: 18220; 18280; 18330
Scenario 1: Long positions above 17915 with targets @ 18220 & 18280 in extension.
Scenario 2: Below 17915 look for further downside with 17830 & 17735 as targets.
Comment: The RSI is bullish and calls for further upside.
APPLE
The price of Apple Inc (NASDAQ:AAPL). moved around 0.5% higher in afternoon trading on Thursday, following reports that the tech giant is seeing strong sales of its Apple Watch band. Almost 20% of consumers that buy an Apple Watch are also paying for the additional watch band allowing the iPhone maker to reach further into customers' wallets. Investors will be watching closely for upcoming data showing how many units of the watch the company has sold or how profitable the device has been.
Pivot: 128.3
Support: 125.6; 124.75; 123.3
Resistance: 128.3; 130.2; 131.5
Scenario 1: Short positions below 128.3 with targets @ 125.6 & 124.75 in extension.
Scenario 2: Above 128.3 look for further upside with 130.2 & 131.5 as targets.
Comment: The RSI is below its neutrality area at 50%