Trading plan for July 10
Market sentiment improved on Thursday, as the Greek question seems to close to an end. Greek government is on its way to find a compromise with the European creditors. China’s stock market retraced higher after days of a dramatic decline, adding to the market optimism. Demand for the US dollar remains limited after the FOMC meeting minutes released on Wednesday. Commodities and risky currencies (AUD, NZD, CAD) have recovered some ground on Thursday amid the improved market picture.
EUR/USD is hovering around 1.1050, trying to fix higher. Resistance lies at 1.1100/30. The pair could dip to 1.0910 and 1.0820 in case if the Greek optimism lowers. GBP/USD has also recovered some ground after the yesterday’s drop, but holds below 38.2% Fibonacci (1.5400). Key resistance lies at 1.5500, support – at 1.5300. Fundamentally, the market will now be waiting for the BOE minutes release on July 22.
On Friday, the market dynamics will be defined by the Asian morning. The upbeat sentiment could persist.