Last week, we wrote, “On the downside, you can sell in 4380 with stoploss of 4395/4420 and a passage in 4320 and especially 4270 might lead us to a larger decline at the same time resulting in a bearish cross daily macd in 4180. “And finally after a fall earlier this week in 4080 we are starting to rebound to finish 4320 on Friday night.
As we have seen all of last week, the market abuzz with rumors about the financial risks and policies of Greece. The Greek austerity plan has still not been adopted, but Europe is willing to pay. Besides, how could you it do anything else with a country that at 350 billion debt and that could lead all of Europe in the bankruptcy.
This week, the case greek should “normally” be resolved with the adoption of new financial measures, as well as the release of European funds. However, a dramatic turn of events is also possible with the rejection of the plan and the holding of early elections. Which obviously would be very negative for the euro.
Graphically, in daily, we are in a triangle with a regression line that goes through 4620 and a line of media with 4180/70 as equilibrium points. The daily MACD is still bearish (but it could turn giving us a strong buy signal in- above 4620). The weekly is bearish and therefore we caution against the rebound Thursday and Friday.
Or the euro is able to return to- over 4380 and in these cases, the market returns to test 4620 with the prospect of a future rate hike in July. You can buy for 4380/4480 and 4280/4320 of 4580. But in 4250, the trend could be reversed, so 4240/30 will be our area of media.Or pessimism prevails on Monday morning and we return to the lows of last week of 4080/50. We sell in 4350 and 4380 with stoploss of 4395.
Area 4380 and 4420, for this week seems to be a zone of balance between the rise and fall. Therefore, we will remain bearish as these and the bull- above.
Finally attention this week to the German statistics the ZEW and IFO June 24
Our advice for the week
We buy for 4280/4320 4420/4520
We sell 4380 for 4220/4180/4080
We buy 4420/40 to 4580/4620