The dollar remained at one-week lows against a basket of other major currencies on Thursday, despite data showing that U.S. jobless claims fell to the lowest level since November 1973 last week, as progress on the Greek debt front supported demand for riskier assets.
The data came after Federal Reserve Chair Janet Yellen said, last week, that the Central Bank is likely to raise rates "at some point this year."
Today the euro zone will release the survey data on the activity of the private sector, while the US is to round up the week with reports on manufacturing and new home sale.
The euro strengthened on Thursday, after a majority of Greek lawmakers voted in favor of a second set of reforms, signaling that negotiations on an €86 billion European Union bailout can begin. The country is aiming for a deal by the middle of next month. The new measures include changes to Greek banking and an overhaul of the judiciary system.
But the single currency moved lower again on Friday, as the dollar remained supported after the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending July 18 fell by 26,000 to a 40-year low of 255,000, from the previous week's total of 281,000.
Today investors are turning their attention to upcoming data on euro zone manufacturing activity, while in the US all the focus will be on Manufacturing PMI and New Home Sale.
Pivot
1.0915
Support
1.0915
1.087
1.081
Resistance
1.1035
1.1085
1.1115
Scenario 1: Long positions above 1.0915 with targets @ 1.1035 & 1.1085 in extension.
Scenario 2: Below 1.0915 look for further downside with 1.087 & 1.081 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Thursday gold plunged more than 1% to close under $1,100 amid a weaker dollar, halting a 10-day losing streak, its longest in nearly two decades.
But gold prices fell hard again in Asia on Friday, as investors see a slowdown in China manufacturing as ensuring continued easy policy by one of the world's top yellow metal buyers, and as continued to assess the scope for a Federal Reserve rate hike in September and geopolitical tension appears eased for now.
Today investors will focus on US Manufacturing PMI and New Home Sale data.
Pivot
1095
Support
1073
1064
1052
Resistance
1095
1106
1119
Scenario 1: Short positions below 1095 with targets @ 1073 & 1064 in extension.
Scenario 2: Above 1095 look for further upside with 1106 & 1119 as targets.
Comment: As long as 1095 is resistance, likely decline to 1073.
OIL/USD
WTI crude fell to fresh four-month lows on Thursday, settling below $50 a barrel, as concerns related to the Iranian Nuclear Pact and a glut of oversupply in energy markets worldwide remained in focus. Iran on Thursday outlined plans to rebuild its main industries and trade relationships following a nuclear agreement with world powers, saying it was targeting oil and gas projects worth $185 billion by 2020.
A rise in U.S. stockpiles is viewed as bearish for WTI crude prices, as supply continues to outstrip demand.
Investors will now focus on: US Manufacturing PMI and New Home Sale data today and Core Durable Goods on Monday.
Pivot
49.7
Support
47.5
47
46.4
Resistance
49.7
50.6
51.4
Scenario 1: Short positions below 49.7 with targets @ 47.5 & 47 in extension.
Scenario 2: Above 49.7 look for further upside with 50.6 & 51.4 as targets.
Comment: As long as 49.7 is resistance, likely decline to 47.5.
DOW/USD
U.S. stocks were lower after the close on Thursday, for a third consecutive day, as losses in the Utilities, Basic Materials and Industrials sectors led shares lower.
At the close in New York, the Dow Jones Industrial Average lost 0.67%, while the S&P 500 index fell 0.57%, and the NASDAQ Composite index fell 0.49%.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 2232 to 858 and 1 ended unchanged; on the Nasdaq Stock Exchange, 1864 fell and 914 advanced, while 7 ended unchanged.
Today investors will focus on US Manufacturing PMI and New Home Sale data, to gain more informations on the strength of the economy.
Pivot
18350
Support
17410
17200
17040
Resistance
18350
18650
18900
Scenario 1: Short positions below 18350 with targets @ 17410 & 17200 in extension.
Scenario 2: Above 18350 look for further upside with 18650 & 18900 as targets.
Comment: As long as 18350 is resistance, look for choppy price action with a bearish bias.
MCD
McDonald's Corp (NYSE:MCD) said it expects global comparable sales to rise in the current quarter, after four straight quarters of decline, as its new chief executive's initiatives to boost sales start paying off along with a recovery in China.
McDonald's shares rose in premarket trading after the company also reported better-than-expected sales and profit for the second quarter on Thursday.
McDonald's has been struggling on myriad fronts and now it is trying to recover from a food scare in China that battered Asian sales and is wrestling with economic weakness and political upheaval in Europe, its top revenue market.
Pivot
94.2
Support
94.2
91.5
86.75
Resistance
101.1
104
107.5
Scenario 1: Long positions above 94.2 with targets @ 101.1 & 104 in extension.
Scenario 2: Below 94.2 look for further downside with 91.5 & 86.75 as targets.
Comment: The RSI is supported by a rising trend line.