The Swedish Krona was the only loser after the SEB housing price indicator for June declined to 56 from 60 in May. USD/SEK rebounded from the support zone of 6.6240 and I would not rule out a test near the 6.6700 resistance zone. However, on the 4-hour chart, the rate is forming lower highs and lower lows below the blue uptrend line drawn from the lows of May 8th and as a result I would consider the recent advance as an upside corrective wave before the bears prevail again.
The Russian ruble was the main gainer among the EM currencies that we track after Ukraine started peace talks involving an envoy of Russian President Putin. Ukraine’s new leader Petro Poroshenko said that the violence that shocked the country’s eastern regions must end this week. USD/RUB continued moving lower after finding resistance at 35.25 on the 4th of June and is now heading towards the support zone of 34.00. At the time of writing, the MICEX index is trading 0.50% up.
DAX moved higher during Monday morning, European time, but the advance was halted by the psychological resistance zone of 10000 (R1). Considering that the RSI found resistance near its 70 level and moved lower, while negative divergence is identified between the indicator and the price action, I cannot rule out a forthcoming bearish wave. However, the index is forming higher highs and higher lows above the blue uptrend line and above both the moving averages, thus I still see a positive picture and I would consider any possible declines as a corrective phase. A clear move above the 10000 (R1) zone would confirm the continuation of the uptrend and could have larger bullish implications.
Support: 9870 (S1), 9685 (S2), 9535 (S3)
Resistance: 10000 (R1) (All-time highs)