Markets hold gains; however look hesitant after the release of consumer price index which rose to 0.2% last month which is the highest gain in four months. While core CPI which excludes food and energy rose 0.2% which came in line with market expectations. In general, the overall optimism was the main theme today and supported risk-correlated assets including the euro, while we are approaching another weekend without a final deal on Greek bailout package, where traders will be anticipating developments or bailout approval by the beginning of the week.
The EUR/USD failed to end yesterday's session below the key support at 1.3025, to rebound sharply to breach multiple resistance levels starting by 1.3075 to 1.3150. The pair is currently attempting to breach another intraday key level around 1.3180, which is a horizontal resistance a long side a short term descending resistance, steady trading above shall extend the risk-on trade towards 1.3235,1.3280 and 1.3320; key support levels start at 1.3150 and 1.3110. The pair is up more than 65 pips form opening price at 1.3129.
The USD/JPY seems near a test of 79.52 post-intervention high; where trading currently settles 20 pips below this level around 79.32, the pair has breached some important technical barriers starting from the main descending resistance of the triangle pattern and the 200-days SMA. The near term outlook could be reversing to bullish, however caution is advised around this critical juncture at 79.50 as price may be exhausted after the major run up, as momentum indicators settle within overbought areas.
Cablehas corrected some of its latest gains, the pair started the day at 1.5798 and currentlytrading around 1.5820 after printing a high at 1.5862 today; following the better than expected expansion in retail sales last month . The pair was supported by yesterday's positive macroeconomic indicators from the U.S. in addition to developments from Greece. Price settles above the intraday support at 1.5820, a dip below could extend to 1.5785-1.5775 next potential support level, while to the upside clearing the latest high at 1.5862 clears the way to 1.5885 and 1.5930.
Oil rallied sharply, currently one-on-one with the major highs and robust resistance at 103.35-103.50, this level has been a major turning point over the long term for oil prices, in addition to that, it's a horizontal resistance for a giant ascending triangle pattern over weekly basis, thus a breach won't be confirmed unless we see stability of trading above the level at least for few days, if happened, the longer term outlook for oil shall reverse to the upside eyeing 115.00 as the next major stop passing by 104.60, 106.10,108.00,110.60 and 114.00. Main support levels to watch in the upcoming period start at 102.50 and 100.80-100.25. The commodity is up around $1 from the opening price at 102.30.