It's hard to go past the fact that the market was solely focused on Greece today. But if one thing is certain the bigger picture is not necessarily the trading picture for the majority of traders. So while the market was focused around the possibility of further action from the Euro-zone -- if Greece was open to it -- there are certainly other opportunities out there. But one thing is certain is that Greek banks are solvent, as the ECB is supplying 89 billion Euros in aid for the banking system in Greece, but this due to end on Tuesday when Greece defaults on the IMF loan that is currently due. So expect the unexpected as this may very well become the reality.
The equity markets have so far tried to weather the storm, but it's been to no avail. Dax futures have touched on heavy support at 10884, but the market has been extremely volatile in the face of the Greek crisis. Many traders will be looking at lower lows in the coming 24 hours if we see no deal come through the system despite market optimism that the Euro-zone won't abandon one of its own.
While the Dax is suffering, the FTSE is also having a struggle at present, and a push down to 6417 is likely at this stage, and traders will be looking for a strong bounce of this point. I wouldn't be surprised to see a lot of pressure on this level, and maybe a strong accumulation period before a breakdown lower.
Despite the turmoil in Greece, the commodity currencies have been ranging around heavily and so far have presented some opportunities. The NZDUSD has jumped sharply on the back of news, and the recent rise in building consents which hit 0.0% m/m; a casual improvement on the previous reading of -1.7%. So far strong pushes to 0.6877 have been rejected of the resistance level, and we may see further pushes lower to 0.667 as this is looking more and more like the key support level traders are aiming for.
Japanese Yen traders have been so far rewarded as the USDJPY has come under heavy pressure as the market previously was heavily risk averse. Support has held up strongly at 122.394 but has come under constant pressure. Traders will be keenly focused on resistance at 123.618, which is likely to be the main focus as pressure comes of the JPY after Greek troubles subside.
The Australian dollar has come under a fair amount of pressure in the most recent trading session and it's likely to come under further pressure as the governor of the Australian economy is set to be the focus as Governor Stevens is set to speak later today. Further pressure lower is set to find heavy resistance at 0.7620 and the market could hold up here for a while as demand for fixed interest is likely to be strong in the wake of the Euro crisis at present.
Lastly oil is a key mover in the current market. Anyone that has been watching for some time has noticed a strong pennant pattern forming in the present market. Further drops are likely to be met with strong support at 57.53, and we could see a very strong consolidation pattern as oil continues to struggle to find direction in the market at present.
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