DOLLAR LOOKS STRONG AFTER THE LABOR DATA

The greenback continued to show positive moves following the better than expected NFP data released on Friday. Today the German trade balance for May showed a surplus of 20.3 billion euro meeting the market’s expectation and not influencing the price dynamics very much. Better news for the euro came from the Sentix investor confidence index for the Eurozone that was 28.3 in June against the expected 28.1. The mood on the markets may see more action later today with statistics on consumer credit amount in the US due at 19:00 GMT.

The dynamics of oil quotes remain highly volatile after the news on the growth in the number of active oil drilling rigs in the US, which according to energy service company Baker Hughes grew for 24 out of the last 25 weeks. This fact together with doubts about the ability for an agreement on oil production cuts in Libya and Nigeria may lead to further price reduction.

The price of gold is approaching the psychologically important level of 1200 dollars per troy ounce. Increased demand for risky assets on the background of bullish sentiment on the stock market, together with the possibility of further monetary policy tightening in USA, Canada, Eurozone and the UK makes investing in gold less attractive. On the other hand, after a recent decline there is a high probability of the price rebound amid fixing short positions. 

EURUSD

The common currency quotes demonstrated a gradual decline after they were not able to hit the strong resistance level at 1.1450. In case of growth resumption and overcoming 1.1450 the next target levels will be at 1.1500 and 1.1620. Within the decline, immediate goals will be located near 1.1350 and 1.1300. After the current consolidation, we anticipate a strong price movement.

Gold

Gold’s price keeps moving along the lower limit of the descending channel. Breaking through 1215 has become the stimulus for a fall with potential targets at 1200 and 1180. We may see the resumption of purchases in the range of 1180-1200. The upward correction in the near future will be restrained by the upper boundary of the channel and resistance at 1230.

WTI

The quotes of American crude oil benchmark WTI restored some of the previously lost positions and returned to the important level of 44.25. The next target level in case of continuation of the upward movement within the channel will become 45.00. Now the price of black gold is near the SMA100 on the 15-minute chart and RSI on the same timeframe is approaching the overbought zone, which points to the possibility of a fall resuming with objectives at 43.00 and 44.25.