Rumors return to the markets today since Mid-EU Session and while risk aversion controls the markets that that FITCH will downgrade Spain Credits Rating again. This resulted in a huge impact on the main Spanish Stock Market Index with the IBEX35 falling 3.50% in addition to the bank sector falling more than 5%. Fitch came back again saying that the Credit Rating for Spain remains stable at AAA with a stable economic outlook FOR NOW!
As for the currencies markets, the US Dollar index remains trading near to its highest level since the beginning of 2010 around 82.80 and we are still in favor that the US Dollar index likely to continue with this up trend toward 83.20 later this week.
The European currency continues to drop back again reaching 1.3115, very near to our expected target of 1.3110. Its expected to reach this level during the US Session later today, before it continues to drop further towards 1.3060 later this week.
The pair dropped back again as expected to test the 1.5188 support level which represents the 50 DAY moving average on the Daily chart. It's likely to be broken later today or this week, and a break below that level will be a clear sign for another down move towards 1.4817 later this week. As for todays target its remain at 1.5120.
The pair hit our target for today of 1.0900 and remains supported by 1.0775 medium term. As for now, the pair is likely to continue with this up trend towards the 1.0947 resistance level.
The pair continues with its bullish move again reaching as high as 94.95 very near to our expected target of 95.00. We are still expecting the pair to reach 95.00 and 95.40 later this week.
The Canadian dollar continues to weaken against the US Dollar, the pair is supported by 1.0090 which currently represents a strong support level. The pair is likely to hit 1.0170 later today which represents our target for today.
Oil prices again failed to break above 86.00 USD per barrel, and this is one of the signs that shows its unlikely to break above that level. For now oil is trading around 85.50 and likely to continue with its down move towards 85.00 and 84.00 later this week.