Greece remains in the spot light as per usual, after cutting a last minute deal at the exit door. After months of wrangling and talk, Greece was forced into a worse position than when it started, which in turn has led to markets being a little worried about this deal.
It's hard to imagine Greece stomaching this, hence the rush in Athens to pass this all into law as soon as possible. The market has seen this conundrum on the horizon and is casually waiting to make any big waves until they see it all passed into law and looking secure for a change.
Equities benefited as per usual however, and the DAX rocketed up the charts pushing out to 11486 before losing momentum, as the market shrugged off early feelings of hope and got ready to wait out the law passing required in Greece. Currently the market is likely to extend further and we will find strong resistance at 11647. A break through here could lead to sharp buying across the board, especially if it was followed by a parliament vote in favour of the bailout.
The Australian dollar came under significant pressure today as despite the rise in risk assets, it failed to find momentum as Chinese trade balance data came in weaker than expected at 45.6B. Support has since held up further falls as it slid to 0.7394. Australian economists at the Reserve Bank of Australia will be hoping for further drops as the trade weighted index continues to show the Australian dollar being strong. As a result I would be closely watching the business confidence index due out shortly which will be able to give strong signals on the direction of the AUD after it is released.
Yen traders be aware your days may be slightly numbered if you're bullish on the Yen, as the USD continues to surge, and the sell-off in Yen positions continues albeit slowly. At present the USDJPY is stuck on strong resistance at 123.458. Further positive news out of the Euro-zone will lead to further jumps higher and a breakthrough of the resistance level should also be treated as possible support on pull-backs. 124.433 is likely to be my next target for resistance on the charts, and we should expect pressure to be sustained if we see higher highs like this.
Finally the S&P 500 is looking like a bull once again, and as I mentioned higher up the page equity markets are looking very good right now. Positive news out of the Euro-zone has a profound effect on the US equity markets at present, and coupled with some positive data for the US economy we could see big jumps on the charts higher. I am currently watching for strong resistance at 2105 as this looks like the line in the sand for S&P bulls on the charts. Anything higher is likely to hit heavy resistance at 2129 as the market looks for record highs. We could however see a very strong push if saw a very positive retail sales reading on the charts, we will have to wait and see if that is the case though.
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