The S&P 500 was up 0.6 percent

Good morning from beautiful Hamburg and welcome to our latest Daily FX Report for this week. European leaders set a Sunday deadline to rescue Greece, saying otherwise they’ll take the unprecedented step of propelling the country out of the euro. At a summit in Brussels Greece’s anti-austerity government was given five days to make new economic reform proposals that could earn another aid package and save it from financial ruin. “We have only a few days left to find a solution,” German Chancellor Angela Merkel told reporters late Tuesday after euro- area leaders met in Brussels. She conceded that she is “not especially optimistic.” Sunday now looms as the climax of a five-year battle to contain Greece’s debts, potentially splintering a currency that was meant to be irreversible and throwing more than a half- century of economic and political integration into reverse.

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Market Review – Fundamental Perspective

The Standard & Poor’s 500 Index rose, reversing a drop of more than 1 percent amid mounting speculation Greece’s crisis will be contained. Emerging-market equities tumbled amid ongoing losses in China and a selloff in commodities, while the dollar strengthened. The S&P 500 was up 0.6 percent by 4 p.m. in New York, rebounding from a retreat below its 200-day moving average. The Stoxx Europe 600 Index fell 1.6 percent, while the MSCI Emerging Markets Index sank 1.4 percent as crude oil to industrial metals dropped on concern Chinese demand is waning. Yields on 10-year Treasury notes declined three basis points to 2.26 percent, extending Monday’s 10 basis-point retreat. Gold touched a 15-week low and silver slumped to the cheapest price in seven months as the strengthening dollar cut demand for precious metals as a store of value. Gold futures for August delivery dropped 1.8 percent to settle at $1,146.80 an ounce in New York. Silver ended 5 percent lower at $14.969 an ounce. The euro weakened 0.4 percent to $1.0992 Tuesday, and touched $1.0916, its weakest level since June 2. The 19-nation currency slipped 0.4 percent to 134.93 yen. The Bloomberg dollar index, which tracks the greenback against 10 major peers, rose for a third day, climbing to its highest closing level since June 1. The U.S. currency had its biggest gains versus currencies of commodity-producing nations, with the Australian and New Zealand dollars down at least 0.6 percent.

Daily Technical Analysis

EUR/CAD (Daily)

The EURCAD touched the downward trend line the 4th time and it might be possible that the price break through next time. The Relative Strength Indicator supports this view and shows additionally an upward trend. The next resistance lines should be considered.

Support & Resistance (Daily)

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