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Today’s Economic Calendar
We follow today’s events in GMT:
At nine o’clock in the morning:
The rate of change in employment in the eurozone for the first quarter of this year, as well as the European GDP for the first quarter.
At 12:30 noon, the US Unemployment Claims report will be released.
Top News in Global Markets:
Yesterday’s highlights:
The Swiss unemployment rate was higher than expected in the month of May, which is hurting the economy.
German Factory Production is lower than expected on a monthly basis for April.
– Canadian trade balance is higher than expected in the month of April, which indicates that exports are ahead of imports, which is good for the economy.
– Also, the US trade balance was higher than expected in the month of April.
– The Canadian Central Bank raised interest rates by 25 basis points, bringing the interest rate to 4.75%.
– From the Energy Information Agency, the US Crude Inventories report was released, indicating that inventories fell short of expectations in the previous week, and this means an increase in demand for crude.
The US trading indices varied, as the Dow Jones Industrial Average advanced by more than 91 points, and the Nasdaq Technology Index fell by more than 170 points.
And in the morning:
– From the Prime Minister’s Office in Japan came the final reading of the GDP for the first quarter of the year, and it was higher than expected.
– The Australian trade balance came in lower than expected for the month of April, which means that exports fell behind imports, which is not good for the health of the economy.
– Asian indices declined, the Japanese Nikkei index fell by 440 points and more, and the Hang Seng index in Hong Kong followed the same behavior, down 91 points.
– The US dollar index is stable and is currently recording 103.91 against a basket of major currencies.
It is expected during the hours of the day:
– The final reading of employment change in the eurozone, for the first quarter of the year.
– From the US Department of Labor we await the amount of claims for unemployment benefits in the previous week.
– From the Energy Information Agency natural gas inventories report.
Technical Analysis
Dollar Index – 1 Hour Timeframe
Continuing to move on sideways, the US dollar index declined today, Thursday, approaching the support levels around 103.85 points, and trading below the 20-50-day moving averages, after the purchasing power failed to push the index to the resistance levels around 104.25 points.
Technically, we expect the index to continue to decline during today’s trading, targeting the support level of around 103.60 points, especially in case the support level of around 103.85 points are broken.
Gold – 1 Hours Timeframe
The yellow metal prices fell at the end of yesterday’s trading sessions, before rising again to $1947.90 in the early hours of this morning.
Technically, the $1954.40 support area has turned into resistance. We expect the correction to continue upwards, up to 38% Fibonacci levels around 1951 and 1954 USD, waiting for its breach to return to the bullish trend.
US Dow Jones – 1 Hour Timeframe
The selling force failed to pressurize the Dow Jones industrial index yesterday to continue its decline below the support levels around 33600, to trade now around those levels in an attempt to retest it after breaching it.
Technically, it is likely that if the price close above those levels, we expect more Bullishness on the index during today’s trading, targeting the resistance levels around 33795, to complete the upward movement over the larger time intervals
US Crude Oil – 1 Hour Timeframe
Oil prices rose to levels of 73.7 dollars after the Bank of Canada raised interest rates suddenly yesterday.
Technically, oil is trading above the 100-hour moving average and below the $72.60 resistance, in a sideways move since this morning. We expect the sideway movement to continue with some corrections around the $72.90 level, awaiting the US unemployment claims data today.
Bitcoin – 1 Hour Timeframe
the price of the digital currency “Bitcoin” dropped yesterday, as it reached $26,110, after rebounding from its highest peak during the week, 27,384.
Technically, the digital currency is trading below the 100-hour price average and the 38% Fibonacci area, indicating the continuation of the downward movement. We expect some corrections around the $26,561 level, before returning to the decline again, targeting $25,910 again.
EUR/USD – 1 Hours Timeframe
Coinciding with the random movement of the US dollar, the Euro rose, on the other hand, within the sideways movement prevailing over it, to rebound from 1.0695 levels.
Technically, we expect the pair to rise during today’s trading and target the resistance levels around 1.0730, and in case of a breach of those levels we will target the next resistance levels around 1.0760, while in the event of a negative price Action around 1.0730 levels, we expect the pair to return to random movement and target 1.0675 again.
GBP/USD – 1 Hours Timeframe
The pound against the dollar rose to 1.2499 resistance yesterday, before returning to decline again around 1.2427 support, with increasing expectations that the Fed will not raise interest rates for June.
Technically, the pair is trading around 1.2450, near the 38% Fibonacci area and the 100-hour moving average. We notice on the chart the formation of a strong support area around the 61.8% Fibonacci area near 1.2400. We expect the pair to return to the upside, but on the condition that it breaches the resistance of 1.2460, and then we target the top of 1.2540.
GBP/JPY – 1 Hour Timeframe
The( GBP / JPY) pair rushed yesterday, Wednesday, after forming the double bottoms pattern around 172.65 levels, breaching the neckline, to target the resistance levels around 174.25, as those levels succeeded in stopping the price’s upward impulse, trading below it today.
Technically, we expect the pair to decline to the support levels around 173.60 to build on it, and then re-Bullish and target the resistance levels around 174.25 and 175.50.
