Markets waver in seesaw play on a mixed confused sentiment; after a mixed auction from Spain where yields rose however demand remained strong on a relatively riskier asset; the Euro's initial reaction was negative as yields have risen where the EUR/USD pair dropped to a fresh daily low at 1.3067 following the release. A wide spread rumors that French credit rating could be downgraded also weighed on the common currency.
However the pair rebounded quickly after digesting the data as the auction could have been worse, meanwhile downbeat jobless claims from the U.S. Pressured the U.S. claims rose to 386,000 last week above market consensus of nearly 370,000, while last week's figure was revised up to 388,000.
The EUR/USD is struggling to breach the descending resistance of the possible falling wedge pattern, around 1.3130, a break above and steady trading for few hours above the trend line shall signal further upside for the pair, eyeing a retest of 1.3210 and 1.3250, while any downside bias shall not sustain unless 1.3000 is taken.
The GBP/USD maintained the strong bullish bias, the pair managed to take 1.6000 and headed to retest 1.6060 resistance, we see further upside for the pair within the upcoming period towards the next main target at 1.6150. The area among 1.6000-1.5975 should form a strong support for the cable within the upcoming period, only a dip below shall lead to another test of the ascending trend line.
The USD/JPY touched areas near our target at 81.80, before reversing again, now 81.20 should be watched carefully, as a breach below this level may resume the bearish bias again towards 80.50. on the other hand a confirmation of the bullish continuations scenario will be by taking the descending resistance of the channel and 81.80 level, eying 83.00 again.
Gold rebounded strongly after testing the major support at 1630.00 and the median of the main descending channel, thus the upside bias remains intact and favored within the upcoming short period, eying the top of the channel at 1670.00. Steady trading above 1630.00 is the only requirement for the bullish to remain in favor, where a dip below 1630.00 could lead to 1612.00.