The clock is ticking ... tick-tock ... tick-tock; the leaders of France and Germany told Greece on Monday time was running out, a deal should be done to reduce spending and progress with the needed budget cuts as the country is grappling with time, the austerity measures should be agreed upon today for Greece to be granted the second bailout of 130 Billion Euros.however, no news so far, we are still waiting.
One Greek official denied that the Greek parities involved in these negotiations were given a specific deadline.
The EUR/USD pair was under clear pressure today as Greece weighed on markets generally, the pair opened the week with a bearish gap at 1.3116 after closing Friday's session at 1.3155, to continue the fall from then, printing a daily low at 1.3027, which is the ground of the latest range bound that confined price within the past week. The selloff decelerated after Germany's factory orders saw an expansion of 1.7% this month from a 4.9% contraction last month, the figure beat estimates of 0.7 expansions. Investors confidence has improved as well as the Sentix Index showed an incline of 10% from -21.1 to -11.1%.
Failure to hold back above 1.3060-1.3070 could extend the pair's losses further and a breach below 1.3025 could accelerate the selloff targeting January 25th low at 1.2930. The pair is currently attempting to find a ground near this area above 1.3025, currently trading at 1.3050.
The dollar index rallied today after opening the day at 79.08 the index printed a high at 79.51, which a critical technical resistance for a rounding bottom formation where the neckline of this formation around 79.50, breaching the level may indicate an upside reversal, and hints the current bearish correction done. However, the index has reversed to the downside from this critical juncture currently trading around 79.38.
Gold extended its recent losses after starting the day at 1728.00 the shiny metal continued yesterday's decline, the metal tested a main short term support at 1715.00 to rebound slightly, steady trading below this level shall signal further downside pressure in the near term for a possible test of the short term ascending trend-line currently around 1690.00-1680.00
Oil also was a loser today, however it's currently paring some of the losses, as it's trading around 97.15 after opening the day 97.69. The commodity printed a daily low at 96.37 before rebounding again. Oil breached the support of a descending triangle pattern around 97.80-98.00 lately which hinted further selloff to bottom at 95.45, now it seems like the commodity is heading towards a retest of this breached support, failure to hold above that level shall hint that we may see another bearish wave that could extend downside targets dramatically lower, starting from the latest low at 95.50 followed by 92.50 areas. On the other hand steady trading above 98.00 shall resume bullishness in the near term targeting 100.00 again.