Gold and silver were strong movers today as the market looked to turn on news out of the Euro-zone on the fact that Greece (hold your breath) may have a deal with the other Euro-zone members. A key sticking point so far according to various sources is the restructuring of European Central Bank debt. Either way we saw some unwinding in the metals markets, as gold extended its second day of bearish momentum to touch strong support at 1177.00. If tomorrow provides further positive news out of Greece we could see a push down to lower support at 1162.79.
Silver markets have been quite active as well and we saw unwinding during today's session on European news. Further drops are certainly possible but the market is currently holed up on support at 15.776. Like gold if we see further unwinding in the metal market then certainly we could see a strong push down to 15.524. Despite the unwinding it's worth being aware of Greece's last minute ability to cause knee-jerk reactions when it does not get its way.
The DAX has also been another star in trading and many will be looking to see further bullish momentum continue - even as a Greek deal seems probable - there still looks to be further room to climb higher. Resistance at 11629 is likely to be tested, and if there is good news early in the morning we could see further gapping on opening, which could catch a few people out.
The FTSE is also worth a notable mention at present but is lacking the volatility of the DAX, however the levels are much more cleaner and the Greek problem dissipating could lead to some strong higher highs in the near future.
The USD seemed to be the big winner on the market overall as core durable goods orders m/m came in at 0.5% in line with last month's reading. The market had been expecting a slight pick up to 0.6%, but was fairly flat as a result. The real news came later in the session as new home sales were much stronger than anticipated coming in at 546K. As a result of the positive data the Dollar Index pushed 95.855 before pulling back slightly on profit taking.
The loony, as previously mentioned in my article, flirted with resistance at 1.2380 before having a brief pullback. The Canadian dollar was always going to struggle against the USD on a positive day and with a very low impact week of economic data, however the pullback of resistance shows that despite the assumption of the long term bullish trend line in play, we may instead have some hesitation in the market to push higher just yet. The 1.2380 level is likely to be an accumulation level though for bulls on the second attempt to breakthrough.
Aussie dollar bulls will be happy with another strong day today, as Chinese HSBC flash manufacturing PMI data came in stronger than anticipated at 49.6. The strong reading bodes well for Australian economy which is still struggling, but we are starting to see a tight bullish channel forming on the charts (D1) and a bullish trend looks to be the future in the mean time. Strong resistance can be found at 0.7800 and we could see further testing of this level in the short term as the bulls will be looking to test this in the lead up to next week's trade balance data.
The Yen could see some movement during the Asian trading session as the market will be waiting for the Bank of Japan monetary policy meeting minutes. Nonetheless, it's likely that major volatility will be restricted to EURJPY and GBPJPY as the monetary policy meeting minutes are expected to be lacklustre for traders and have no surprises.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.