Some meaty data were released from the U.S today, starting from the inflation figures in the form of the producer price index which inclined to 0.4% from 0.1% last month hinting upside inflationary pressure could be building up; anyhow the number was below market expectations of a 0.5% rise. On the employment front, unemployment claims showed people signing for jobless benefits declined 14,000 last week, hinting the labor market conditions continue to improve however amid rising in prices.
Finally, the Philadelphia Fed Index showed manufacturing activities within the district expanded more than expected printing 12.5 instead of the 11.9 estimated reading.
Figures confirm the U.S economy may be ahead; leading its global counterparts, reducing the possibilities of a new stimulus and giving a boost to the U.S. dollar in the upcoming period.
Let's have a technical look at the markets; we have seen a daily closing below the 50-days yesterday where the EUR/USD pair dropped to test the potential support zone among 1.3025-1.2975. The pair rebounded slightly with the start of today's session; however downside pressure remains evident. The aforementioned support could be capable of pushing price higher later on, but we need to see steady trading back above the 50 average in addition to 1.3100 level to look for an extended move to the upside to 1.3190, 1.3240 and 1.3300.
On the other hand we will anticipate a daily closing below 1.3000-1.2975; which shall signal the bearish trend could be resuming eyeing a retest of 1.2600 lows. The pair is currently trading in the positive territory at 1.3056 after opening the trading session at 1.3029.
Moving to the British pound against the greenback; the pair has been under downside pressure since few days, currently pushing to the downside attempting to breach the pivotal support at 1.5645. In general, the pair is trading within a short term descending channel, where a sustained breach below 1.5645 shall extend the bearish move towards the bottom of the channel currently around 1.3535. While to the upside, trading below 1.5750 shall keep the bearish bias intact on the pair, only a breach above shall hint further gains for the pair in the near term to 1.5830 and 1.5890.
USD/JPY touched above 84.00 today but failed to maintain stability above 84.00 level to trade again around 83.30 now. The pair is down from the opening price, which is very normal as we have seen a major run recently. We look for consolidation below this area now and mainly below 85.00 level, looking for a test of 82.60 and maybe lower to 81.90 before attempting to the upside again. However any major move to the upside should be confirmed by surpassing 85.00 pivot.
Gold printed a low at 1634.00 yesterday to rebound this morning looking to retest the main breached area at 1660.00 again, as the metal may witness another push by bears targeting the 61.8% Fibonacci level for the whole recent bullish wave at 1625.00, followed by 1600.00 which is a long term ascending trend line. Moving to the upside and pushing above 1660.00 will open the door to 1680.00.