More volatility in the financial markets yesterday and again little change in terms of major instruments finding a direction. With all eyes on the Greek debt talks since we had no important reports scheduled for release over the past 24 hours and with no progress at all between Greece and its creditors traders remained cautious and their nervousness was reflected on the majors’ price action.
Today we are bound to have more of the same, there is again a lack of any other significant news or developments on a global scale hence the focus will again be on this morning’s meeting between the Greek Prime Minister and the rest of Europe’s leaders. Yesterday the Eurozone and the IMF rejected the latest Greek proposal and insisted on a number of reforms that deviate from Tsipras’ pre-election promises and now the Greeks are facing more cuts or a possible exit from the Union.
The Euro was pretty nervous in its trading yesterday, having found a temporary support area around the 1.1200 figure and spent the day range-trading on either side of this level. It is clear that any development on the talks will be reflected on the Single currency’s price action and with all bets are off at this time given the new stalemate Greece finds itself at again. The exit from this sideways pattern will give us a technical hint on what to expect with the 1.1300 area being the first targets towards the upside.
The Cable on the other hand had a pretty much clearer outlook yesterday when the currency extended its recent rally lower only after testing the 1.5800 resistance first. The Cable has hit 1.5700 during the day and this morning is trading just below this level, truth be told the momentum lower needs to have slowed down so for more losses to come fresh news or developments need to spark investors’ interest.
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