US Open – 25.06.14
June 25, 2014Good morning,
Here are some key news for you prior to the US open.
Similar to yesterday, EUR caught a bid as London walked in. After being stuck at 1.3605 for the entire Asian session, EURUSD pushed up to a high of 1.3619 fairly quickly. However, momentum waned almost as fast and spot has drifted back to the opening level. Trading around 1.36 now.
Similarly EURGBP rallied above 0.8030 from around 0.8017, but failed ahead of the short-term resistance at 0.8032 which was the 38.2% Fib of the recent sell-off from 0.8353 to 0.7959. Spot has since drifted back to the opening level.
USDJPY has traded in a 6-pips range of 101.88-94 this morning and is still there. Almost no movement since yesterday after US Open. We are looking for a break of 101.65 on the downside where if it happens it can take us down to 101. On the upside the resistance is 101.20.
Cable has entered a downwards trend and is trading bellow 1.70. We like the downside here as a retracement to about 1.6750 with a stop above 1.71 before we are to go back long.
Here is some geopolitical news:
In Iraq: Syrian war planes carried out air strikes in western Iraq, against ISIS military targets, killing at least 50 people and injuring 132. The strikes on Tuesday came as the Pentagon announced that the first 130 members of a potential 300 US military advisers were in place in Baghdad to start assessing and improving the Iraqi army’s ability to counter the gains of rebels led by the ISIS.
In Ukraine: The Ukrainian military says one of its helicopters has been shot down by pro-Russian rebels in the east, killing all nine people on board. This development comes a day after the rebels vowed to observe a ceasefire until Friday, in response to a government peace plan. Signs are emerging that the truce might be unravelling on the ground. In the good news Putin asked the parliament to withdraw the right to use military intervention in Ukraine and the activists also mentioned that they will keep the ceasefire.
The Ruble has now returned to the levels it was trading prior to the Ukraine crisis breaking out on February 22nd. It is trading bellow 34 against the dollar now.
The main economic news coming out today is the Core Durable Goods and the Final GDP q/q both from the US and both at 13:30 BST. For other economic news you can check out the Economic Calendar at the top of the page.
Good luck trading. For any questions you can email me at denis.taranov@savitrading.com.
