After announcing that Greek official leaders agreed on a draft for the austerity measure needed for the country to get hold of the bailout yesterday; some thought that this annoying story is about to set a short term tentative end, unfortunately the euro finance ministers had something else to say extending the resolution few more days, specifically after the weekend, as the minister put further conditions for Greece to meet before securing the bailout; as they demanded 325 Billion Euros of cuts in addition to assurance that Greek political parties (parliament) will approve a rule regarding this spending cuts. This rule is set to be voted on this weekend by parliament.
As a result; the EUR/USD pair took a big a hit today, falling so far more that 125 pips from open price at 1.3284 to print a low at 1.3154 and currently trading at 1.3175. This decline grabbed the pair below the main neckline for the bullish inverted head and shoulders pattern around 1.3230-1.3200. Intraday trend has turned extremely bearish after breaching this short term juncture however the overall pattern is still in play with invalidation below the right shoulder at 1.3025. For now, as intraday momentum indicators are extremely oversold price may retrace to retest the breached area around 1.3230. However it should find resistance there, the intraday outlook will remain beairsh so long as trading remain below this breached support,turned into resistance.
The Japanese yen continues to lose grounds against its counterparts after speculations increased lately about the so called stealth intervention by the Bank of Japan to devaluate its currency after reaching these critical levels, which is a big hurdle for economic recovery. The pair is slightly up today trading around the resistance of the main descending triangle we mentioned previously, testing the latest high at 78.25 seems within hand and that would confirm the breach of this triangle hinting further gains within the coming period; eyeing the long term descending trend-line and the post-intervention high around 79.45.
Intraday support at 77.50 followed by 77.20, while 77.75 is the first barrier to the upside followed by 78.00.
The GBP/USD fell as well today, currently trading below 1.5800 pivot after opening the day at 1.5816. The pair settled below the 200 hours SMA,however the average remains neutral with a slight upside bias, over intraday basis the outlook has turned bearish as the 50-hours average almost completed a bearish crossover below the longer term 200-average.
In general, failing to end the week above 1.5800 may turn the short term outlook into bearish, unless a Greek resolution was done this weekend Intraday support levels start at 1.5760 followed by 1.5725 and 1.5700 while first resistance at 1.5800 followed by 1.5850
Commodities were under pressure as well today as U.S dollar gained, where Gold printed a low at 1704.50 after starting the day at 1730.00. The commodity is testing a very critical short term support level around 1705.00-1710.00 a dip below with steady four hour closing below the level could lead to 1680.00 as the next possible stop. The metal has breached a short term ascending trend-line lately hinting further pressure could be seen however a breach below the aforementioned level shall confirm it. While keeping in mind developments from Greece over the weekend.