European and Asian stock market indices are falling, Swiss NB is fighting strengthening Frank and oil and precious metals are declining. As continuing Greek crisis maintains uncertainty on the markets, investors reduce their risks and acquire currency safe-havens, the USD and the Yen. Greek referendum on Sunday showed that the majority of voters said ‘no’ to creditors demands. Finance Minister Yanis Varoufakis has resigned.
During market uncertainty, precious metals prices usually grow. However, they decline now as the USD is strengthening and the cost of borrowing increases thus the return on precious metals is falling.
Today, few releases in the US are out between 4:45 pm and 6:30 pm (GMT +3). Markit Services PMI is expected to grow (56.3 forecasted and 55.7 for the previous period).
Support and resistance
Short positions are preferred amid the strengthening USD.
OsMA and Stochastic on the 4-hour and daily charts signal purchases.
The price is moving towards the lower border of the channel (1157.00) and with the trend continuation towards 1149.50 (0% Fibonacci) and 1143.00 (year lows).
The growth is restricted by resistance levels at 1185.25 (23.6% Fibonacci), 1200.30 (EMA144 on the daily chart), 1207.50 (38.2% Fibonacci), 1210.50 (EMA200).
Support levels: 1149.50, 1157.00, 1162.00
Resistance levels: 1180.00, 1185.25, 1200.00, 1207.50.
Open short positons from the current levels and from 1174.50, 1180.00, 1183.00 with stop-loss at 1188.00 and targets at 1157.00, 1149.50.
Long positons can be opened after the breakout of the level of 1185.25 with targets at 1200.00, 1210.00, 1225.50 (50% Fibonacci).