Several economical news releases by U.S. Department of Labor, BoJ and Europe Countries coming up.

The comprehensive market analysis on the current volatile market is here.

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The dollar continued to hover at two-week lows against the other major currencies on Thursday, after the release of disappointing U.S. jobless claims data and as the Federal Reserve’s decision to leave its monetary policy unchanged continued to weigh on the greenback.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 23 increased by 14,000 to 266,000 from the previous week’s total of 252,000, while analysts had expected jobless claims to rise by 7,000 to 260,000 last week. The data came a day after the Fed left interest rates unchanged at the conclusion of its two-day policy meeting, in a widely expected move.

Elsewhere, the safe-haven yen jumped against the dollar on Friday after the Bank of Japan’s modest monetary policy easing disappointed investors who had been hoping for more radical stimulus measures. The BOJ announced a modest increase in purchases of ETFs, but maintained its base money target at 80 trillion yen ($775 billion) as well as the pace of purchases for other assets including Japanese government bonds, and it also kept negative interest rates unchanged at minus 0.1%.

Today Germany is to release data on retail sales, while Spain is to produce initial estimates on consumer price inflation and second quarter economic growth. The euro area is also set to unveil its preliminary inflation estimate for July as well as flash GDP figures for the second quarter, and the U.K. is to release data on net lending and mortgage approvals. Canada is to report on monthly GDP growth, while the U.S. is to round up the week with an initial estimate of second quarter economic growth and revised data on Michigan consumer sentiment.

EUR/USD

The euro gained 0.35% to a two-week high of 1.1098 on Thursday. Data earlier showed that the number of unemployed people in Germany declined by 7,000 in July, compared to expectations for a 3,000 drop and after a 6,000 slide the previous month. Germany’s unemployment rate remained unchanged at 6.1% this month, in line with expectations. A separate report showed that Spain’s unemployment rate ticked down to 20.00% in the second quarter from 21.00% in the previous quarter, compared to expectations for a slip to 20.40%. Today investors will focus on a string of data that will be released in Germany, Spain, UK and in the Eurozone, for further information on the strength of the EU.

Pivot: 1.105
Support: 1.105 1.103 1.1005
Resistance: 1.111 1.1125 1.115

Scenario 1: long positions above 1.1050 with targets @ 1.1110 & 1.1125 in extension.
Scenario 2: below 1.1050 look for further downside with 1.1030 & 1.1005 as targets.
Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Gold

Gold pared gains after hitting two-week highs on Thursday, as market players digested signals that the Federal Reserve could avoid a near-term interest rate hike and looked ahead to a closely-watched meeting from the Bank of Japan. The precious metal rose also in Asia on Friday, as the Bank of Japan moved cautiously in its latest policy review, but signaled that it might act in the future if warranted. Investors were on the lookout for slight easing measures. While Japan prime minister Shinzo Abe unveiled a broad ¥28 trillion stimulus plan on Wednesday, Reuters reported that the Japanese government may only provide as much as ¥7 trillion in direct fiscal stimulus.

Pivot: 1332
Support: 1332 1324.5 1315.6
Resistance: 1352 1357 1364

Scenario 1: long positions above 1332.00 with targets @ 1352.00 & 1357.00 in extension
Scenario 2: below 1332.00 look for further downside with 1324.50 & 1315.60 as targets
Comment: a support base at 1332.00 has formed and has allowed for a temporary stabilisation

WTI Oil

U.S. crude futures fell sharply on Thursday, officially entering bear market territory, as further signals of global oversupply dragged oil prices to levels not seen since a failed Doha summit in mid-April. U.S. crude futures have now tumbled approximately 22% from their June highs around $53 a barrel. On Thursday, oil prices showed little signs of reversing an extended downturn after recent data provided indications of rising stockpiles, swelling rig counts and a spike in production. Market players await today’s weekly rig count from Baker Hughes for further signals on drilling activity nationwide.

Pivot: 42.2
Support: 40.6 40 39.6
Resistance: 42.2 43.17 43.71

Scenario 1: short positions below 42.20 with targets @ 40.60 & 40.00 in extension
Scenario 2: above 42.20 look for further upside with 43.17 & 43.71 as targets
Comment: technically the RSI is below its neutrality area at 50

US 500

U.S. stocks were relatively flat on Thursday, remaining in tight range-bound trade, as a disappointing quarter from Ford Motor Company and continued declines in oil prices offset momentum from strong results in the technology sector on the busiest day of second quarter earnings season.
The Dow Jones Industrial Average fell 0.09%, closing lower for the fourth consecutive session and the fifth time in the last six trading days ; the NASDAQ Composite index gained 0.30% ; while the S&P 500 Composite index added 0.16%.
On the S&P 500, seven of 10 sectors closed in the green as stocks in the Consumer Services, Technology and Financial industries led. Stocks in the Telecom, Energy and Industrials sectors lagged, all closing in negative territory for the session.

Pivot: 2072
Support: 2072 1992 1950
Resistance: 2190 2220 2250

Scenario 1: long positions above 2072.00 with targets @ 2190.00 & 2220.00 in extension
Scenario 2: below 2072.00 look for further downside with 1992.00 & 1950.00 as targets
Comment: the RSI is bullish and calls for further advance