At the very beginning of the Thursday session, we see very little in the way of Asian announcements. However, we do recognize that the German Unemployment Change numbers could have an effect on the DAX, as well as the EUR/USD pair. With that being the case, we actually think that the EUR/USD pair could be one of the markets the pay attention to as we did have a little bit of a bounce during the session on Wednesday, but still have a significant gap just above current levels. As far as the DAX is concerned, it’s very possible that we may see a little bit of a pullback. If we can get above the €9600 level however, that would be a very positive sign as we should reenter the previous consolidation zone that leads to the €9900 level.
Later in the day, we have the German CPI numbers coming out, and the expected 0.2% number will more than likely affect the same two markets. With that being the case, we are effectively concerned about the DAX and the Euro initially during the day, and will probably find yourselves focusing solely on those two markets.
Later in the day, the United States releases its quarter over quarter GDP preliminary number, which is anticipated to come out at 3.9%. This will obviously have an effect on the US stock indices, and with the S&P 500 pulling back but finding support below during the session on Wednesday, we ended up forming a hammer. Because of that, we think that a move above 2000 could very well happen, but we don’t get truly interested in buying the S&P 500 until we break above 2005.
S&P 500 Daily Chart
The Japanese release Industrial Production during the session as well, which of course is a month over month number. It is anticipated to come out at 1.0%, which of course can move both the Nikkei and the Japanese yen. As the USD/JPY pair broke out recently, any pullback at this point in time in reaction to this number could possibly lead to a buying opportunity as the 103 level should continue to be a bit of a floor.