The USD/CAD is not able to break above the 1.2600 level

The US Dollar tries to regain some ground versus the Canadian Dollar and it goes back up to the 1.2600, but it couldn’t break above that level. The Canadian Dollar has a positive correlation with oil, and because oil has been dropping, that’s why this pair has been rising. If the price of oil goes back up, then the pair may bounce from this zone to the downside and the 1.2421 or the 1.2400 could become a good support.

Important notice for ActivTrades clients

The uncertainty surrounding the negotiations with Greece still persist, because the Hellenic Republic has not been able to come to an agreement with its creditors. There is a referendum scheduled for this Sunday in Greece to have its people decide if they accept or not the terms imposed by the European Central Bank, The International Monetary Fund, and the European Commission. These three entities are Greece’s main creditors. The referendum on Sunday may cause a lot of volatility in the markets, especially on the Euro crosses and other instruments. That is why ActivTrades has decided to raise its margin requirements on certain trading instruments in order to protect its clients from adverse market reactions. The complete notice may be found at:

http://view.news.activtrades.info/?j=fec6167777610474&m=fe9112727164037477&ls=fe3315717d66077d721674&l=ff5a137772&s=fe551277766c0d757414&jb=ffcf14&ju=fe681570716100787615&r=0

FOREX: EURAUD EURCAD EURCHF EURGBP EURHUF EURJPY EURNOK EURNZD EURPLN EURSEK EURSGD EURTRY EURUSD

INDICES: Blg20Jul15 Bra50Aug15 Esp35Jul15 Euro50Sep15 Fra40Jul15 Ger30Sep15 GerTecSep15 HKIndJul15 Ind50Jul15 Ita40Sep15 Jp225Sep15 Neth25Jul15 Nor25Jul15 Swi20Sep15 UK100Sep15 Usa500Sep15 UsaIndSep15 UsaRusSep15 UsaTecSep15 UsaVixJul15 USDIndSep15

FINANCIALS EuBblSep15 EuBundSep15 EuStzSep15 UsaTBSep15 UsaTNSep15

METALS: Gold, Palladium, Platinum, and Silver. 

Possible hammer formation on the NZD/USD

The Kiwi versus the Greenback breaks below the 0.6700 level, but it couldn’t stay below that level and goes back up, leaving behind a relatively long lower shadow. We are on the Daily chart and if this Friday’s candle closes bullish, then it will confirm the hammer formation, which is a bullish reversal pattern. But a change in trend on the pair would not be confirmed until the price breaks above the trendline or above the 0.6900 level. 

The GBP/USD nears the 1.5600 level

The Pound versus the Dollar had been consolidating for the past few days between the 1.5700 level as support and the 1.5800 level as resistance. For today the Dollar strengthen versus its main counterparts and that is why we see a breakdown below the 1.5700 level and yesterday’s low. On the one hour chart of the GBP/USD we can see how the bearish momentum accelerated once the price broke below the 1.5700 level and it is currently trying to visit the 1.5600 level. If there is a visit to the 1.5600 level, then the price may try to stall there or even bunce to the upside, but if the Dollar keeps gaining ground, then the bearish trend may continue.

Will there be a trend change on the GBP/JPY?

The Pound versus the Yen has kept a good uptrend and once it reached the 196.00 level on the daily chart, it stopped there and bounced to the downside. The price dropped more than 300 pips after the bounce and breaks below the 193.00 level. At the same time the price breaks the bullish trendline indicating a possible change in the trend. If the price keeps dropping, then the 190.00 may act as a support. If the price goes back up, the 196.00 level may act again as resistance.

The Euro fills up the gap and returns to Friday’s high

The drop in the Euro did not last long, due to the fact that there is speculation that the markets have already priced in a possible Grexit and it is believed that the European Central Bank has enough resources to mitigate any adverse effects from Greece leaving the EU. The Euro comes back to the upside, but we do not know for sure how it will react to the Non-Farm Payrolls, which if it comes out better than expected, we may see the EURUSD come back down. It is also believed that whatever happens with Greece, it will not change the future plans of the FED of raising its interest rates.

No major movements in the markets

Currencies were somehow volatile for today, but no clear direction. It seems like the big players are staying on the sidelines, just awaiting a solution to the Greek dilemma. Over the weekend markets are closed and investors and traders were not willing to leave big positions open, because we don’t know for sure what may happen with Greece. If no deal is reached tomorrow, Saturday, then they still have until Tuesday to come to an agreement. Therefore, we may still be on stand-by mode until next week.