Overnight the latest meeting between Greece and it’s creditors was cut short. The toll is obviously showing on Greek Prime Minister Alexis Tsipras, with it being reported that the meeting ended with the group storming through the press area without so much as a single word to eagerly awaiting reporters.
After months of negotiations, you have nothing to say barely a week away from default? That doesn’t sound promising does it…
Really Tsipras is stuck. He has to give the IMF pension reform that he has promised the people he will not touch. Instead the offered rise in taxes are seen as a hollow promise that isn’t going to change anything fundamentally in managing the country’s debt.
An obviously frustrated Tsipras took to Twitter to push his case:
So yet more late night talks have come to an end without agreement. With the Greek government thinking it had given significant ground in its latest proposal, the IMF in particular isn’t having a bar of it.
Just another day closer to the June 30 deadline…
On the Calendar Today:
All quiet on the Asia Session calendar today with the usual political and central bank driven headlines ready to come into play during Europe and beyond.
US Unemployment claims being the pick of the market moving data.
CHF SNB Chairman Jordan Speaks
EUR EU Economic Summit
USD Unemployment Claims
USD FOMC Member Powell Speaks
Chart of the Day:
We talked about the key level in Gold that price was sitting at going into FOMC and expected last month’s meeting to be the catalyst for a move away. Let’s take another look at the charts and see where price is sitting now a few weeks later.
Click on chart to see a larger view.
As you can see, not much has changed. Price is still stuck inside it’s support/resistance zone on the weekly chart. The down sloping trend line also stayed in play as price couldn’t rally high enough to test the level.
Gold 4 Hourly:
Click on chart to see a larger view.
Zooming into the 4 hourly chart, I have marked the area that has played out since the pre-FOMC Technical Analysis post. As you can see, price tried to push up on what was interpreted as a ‘dovish’ Fed.
But the rally had no follow through and while still inside the weekly zone and capped by broken trend line support now turned resistance, it was short lived and has since fallen back to where we started.
This to me shows real weakness in the level and positioning for a break of major support, is very much still my preferred trade.
Are you taking a Gold position? Leave a comment below or mention @VantageFX on Twitter.
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