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Monday, July 6th
EUR/USD fell sharply this morning hitting the 1.0970 level after Greeks voted “No” to the bailout package proposed by the creditors. This accounts to 1.4% drop compared to the Friday’s closing price. Currently, the pair is located at 1.1065 with support and resistance levels at 1.0945 and 1.1125, respectively.
NZD/USD was broadly lower today opening at 0.6653 in Asia. Negative U.S. Non-farm Payrolls data of last week didn’t give the kiwi any medium-term support and the bearish trend is likely to continue this week without any significant news coming out from New Zealand.
AUD/USD also dipped to 0.7462, which was its six-year lows. It is unclear if the aussie is going to weaken any further this week, especially ahead of tomorrow’s Interest Rate decision in Australia. It was said that RBA might stick to low interest rates in favour of giving the economy time for recovery. The support for Australian dollar is located at 0.7435 and resistance at 0.7585.
GBP/USD is moving sideways today after opening at 1.5557 in Asia. The British Manufacturing Production data coming out tomorrow is going to add some volatility to the trade but it is unlikely to reverse this medium-term bearish trend.
Swiss CPI data came out higher than expected. The current price is 0.9426. Investors are viewing the 0.9535 level as passing it would give a sign of a more long-term bullish trend. The SNB’s negative interest rates are aimed at keeping the CHF cheaper, but market has been watching a more or less consolidated movement of USD/CHF since the beginning of May.
USD/JPY is back below 123.00 level currently located at 122.68.
USD/CAD has seen a considerable rise over the last three weeks hitting the highs of 1.2633. The trade will be very volatile in the afternoon when ISM Non-Manufacturing PMI and Canadian Ivey PMI come out at the same time. Currently, the pair is trading at 1.2575.
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