Oil markets continued to find further pressure in the market place as it looked to slip lower on the charts, and at present it's not far off support at 44.33. This has been sort of surprising for a number of retail traders out there today, as oil inventory data showed a small reduction of -4.1 M barrels. Now for many this would constitute a rise in oil prices, but with a strong USD and the prospect of Iran being the focus as of late it certainly looks likely that we could see further slipping on the charts to hit at least support.
I would not be surprised to see oil have a knee-jerk pullback on the charts. But it won't come off anything fundamental at present, it's more likely to be a technical play for the moment, so with the push back of 44.33 I would target strong resistance levels that may present brief opportunity, especially on the shorter time frames.
The DAX has seen some strong runs as of late as the Greek problem seems to be becoming a distant memory (famous last words). With the most recent economic data out today on services PMI showing better than expected results across the Euro-zone, bar Italy. So with some positive news it's of no surprise to see the rise on the charts. Current resistance levels are looking strong though, so we could see further build up to get us over the line of 11791. Certainly, it's looking likely if Greece does not flare back up and cause further struggle in the Euro-zone the DAX could see some higher highs.
The Kiwi dollar continues to have a hard time on the charts, and as talked about yesterday it's likely to continue to have a struggle as milk prices take a large dip, and also as commodities suffer under the current dip in consumption. For the former high flying kiwi there is also a threat that further drops in the AUD could drive it lower as well, so I would be looking to see now more than ever if the recent pullback was nothing more than a dead cat bounce, or we could see pressure on support. If we do see a breakdown then 0.6258 is likely to be the next target in the long term for the NZDUSD.
Lastly it's worth touching on the Aussie dollar after the kiwi, as unemployment data is due out shortly. For the most part many are expecting to see some improvement in the data and this would not surprise me. What would actually surprise me is to see the AUDUSD actually rally strongly at present as there certainly remains a fair degree of uncertainty in the Australian economy. If we however do see a strong rally I feel that resistance at 0.7423 is likely to act as a strong wall for traders.
On a side note it's super Thursday in the UK, and the markets will be waiting for the BoE today and the possibility of interest rate talk so be aware as always!
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