For the bulls, important resistance levels exist at 87.56 derived from the February 15th yearly high, and at 88.90 which is the 161.8% Fibonacci extension target.
For the bears, important support levels exist at 87.06 low of 16th June which coincides with the MA50, also at 86.90 where the MA100 lies, and finally at 86.36 derived from the low of May 19th.
It’s a busy day ahead for the US market with US Final GDP and Unemployment claims in focus for today. Stats also include Durable and Core Durable Goods Orders as well as Goods Trade Balance and Preliminary Wholesale inventories. Comments from the FOMC members may also cause a market stirrup.
• U.S. stocks were mixed after the close on Wednesday, as gains in the Consumer Goods, Oil & Gas and Financials sectors led shares higher while losses in the Utilities, Basic Materials and Telecoms sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average fell 0.21%, while the S&P 500 index lost 0.11%, and the NASDAQ Composite index climbed 0.13%.
• Sales of new homes in the United States dipped 5.9% in May compared to the previous month, the US Census Bureau reported on Wednesday.
According to the new data, sales of new single-family homes stood at a seasonally adjusted annual rate of 769,000, up 9.2% on the year.
• The private sector activity in the United States was slightly down in June, with the Flash Composite Output Purchasing Manager's Index reaching 63.9, according to a preliminary report published by IHS Markit on Wednesday. This marks a decrease of 4.8 points compared to the previous month.
• The Services Business Activity Index declined from 70.4 to 64.8, well below market expectations, while the Manufacturing PMI beat those same expectations rising to 62.6, as supply strives to catch up to demand in the wake of the economy reopening. At the same time, the Manufacturing Output Index lost 0.4 points to reach a two-month low at 59.2.
• Oil futures settled higher on Wednesday, buoyed by U.S. government data that showed a 7.6 million-barrel drop in domestic crude inventories for the week ended June 18. West Texas Intermediate oil for August delivery edged up by 23 cents, or 0.3%, to settle at $73.08 a barrel on the New York Mercantile Exchange.
Important Daily Events:
• At 12:30 (GMT) US Final GDP q/q will be announced. This report is a measure of the annualized change in the inflation-adjusted value of all goods and services produced by the economy.
• At 12:30 (GMT)US Unemployment Claims are also due. This report is measuring the number of individuals who filed for unemployment insurance for the first time during the past week.
• At 12:30 (GMT) US Final GDP Price Index q/q coming up. This is a measure of the annualized change in the price of all goods and services included in GDP.
• At 12:30 (GMT) US Goods Trade Balance is due. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.
• At 14:30 (GMT) US Energy Information Administration (EIA) Natural Gas Storage coming up. This indicator is a measure of the change in the number of cubic feet of natural gas held in underground storage during the past week.
US Indices yesterday:
• Dow Jones +0.20%
• S&P 500 +0.51%
• Nasdaq +0.79%
Sources: Investing.com, forexfactory.com, breakingthenews.net