According to a Greek government official; the government is preparing a text for an agreement that would be handled to political parties to discuss today, this text is the result of the long-lasted talks with private lenders. After the long wait, markets are getting fresh news from Greece, the news was euro positive as the EUR/USD pair is trading higher currently around 1.3175 after its has been under pressure this morning printing a low at 1.3095 after opening the day at 1.3129. A final approval by political parties shall end this vague phase of the country's perilous journey and avoid a messy default.
The EUR/USD pair has breached the short term descending resistance of a bullish flag pattern suggesting we may see further gains within the coming sessions, initially towards 1.3235 highs, 1.3235 levels is a critical juncture; the level is a neckline for a huge inverted head and shoulders pattern seen over daily basis. A daily closing above this area shall extend targets significantly and we may see a test of 1.3500 soon.
The AUD/USD pair rallied this morning after the Australian central bank spranga big surprise on markets when it decided that there is no need to cut the benchmark interest rate to 4.00% from 4.25%. Markets were expecting a 25bps cut as a result of the recent slowdown in economic activity and uncertainty coming from Europe which weighs on global markets. The wait and see approach by central bankers was justified by the signs of stabilization seen lately in Europe, and economic growth remained close to trend while inflation is well within acceptable range around 2.5% within the targeted 2.0-3.0% band.
The pair rallied sharply after the news, to surpass the recent high at 1.0793 printing new highs around 1.0820 levels. Price is currently fluctuating around 1.0800 mark, grappled by nuisance from Greece, as the talks continue to weigh. Main levels to watch today is 1.0790 followed by 1.0750, as trading below the latter shall trigger further downside pressure towards the major support at 1.0680.
Elsewhere, the Swiss franc fell sharply today after the SNB head Mr. Jordan reiterated that the bank maintains its pledge to purchase unlimited quantities of foreign currencies to preserve the current ceiling of 1.20 franc per euro. The EUR/CHF was trading around 1.2050 before the announcement; currently testing 1.2100 levels. Further selloff is anticipated within the coming period; however an important technical resistance is seen around 1.2125.
Gold pared losses after the positive news from Greece, after attempting to breach the critical support at $1710.00-$1715.00 ;the support of the short term channel that carried price since the latest rally, the metal so far failed to breach this critical juncture to rebound slightly currently trading at $1722.00. $1730.00 is the pivot to watch in the near term, trading above this level will open the door towards $1740.00 followed by 1760.00. If we witness a breach below $1710.00 immediate downside targets will start at $1680.00