For the bulls, a revisit and break above the weekly high of 1.2266 may signal a further rally. Important resistances exist at 1.2350 derived from the January 6th yearly high, at 1.2391 which is the 1.272 Fibonacci extension target, and finally at 1.2577 which is the 1.618 Fibonacci extension target.
For the bears, a break below the uptrend line at 1.2150 may signal a sell-off. Important support lies at 1.1990 derived from the May 5th low, and at 1.1704 which is the bottom of the last downward move of 31st March 2021. The next support lies farther down at a.11611 formed from the Low of November 4th 2020.
• It’s a busier day ahead on the economic data front, with stats from the U.S in focus. The main focus is on US Preliminary GDP figures, Unemployment Claims and Pending home sales results. Natural Gas storage piles may also cause investors to pay attention.
• U.S. stocks closed out Wednesday's session with modest gains as recent comments from Federal Reserve officials helped tamp down concerns about runaway inflation and kept bond yields in check.
The Dow Jones Industrial Average rose 10.59 points, or 0.03%, to 34,323.05, the S&P 500 gained 7.86 points, or 0.19%, to 4,195.99 and the Nasdaq Composite added 80.82 points, or 0.59%, to 13,738.00.
• Mortgage applications decreased last week as fewer homeowners sought to refinance their loans, offsetting a modest rise in applications for loans to buy homes.
The Mortgage Bankers Association (MBA) said on Wednesday its seasonally adjusted Purchase Index decreased 4.2% in the week ended May 21 from a week earlier, reflecting a 7.2% decline in applications for refinancing. The purchase index increased 1.7% from a week earlier.
Gold was down on Thursday morning in Asia after hitting a four-and-a-half month high hit in the previous session as investors await key economic data in the U.S. to be released later in the day.
Gold futures inched down 0.04% to $1,900.50 Thursday morning. The dollar, which usually moves inversely to gold, inched up.
In other precious metals, palladium edged down 0.2%, silver fell 0.4% to $27.59, and platinum dipped 0.7%.
• Oil prices fell on Thursday but stayed within the tight range set this week, with optimism about the summer driving season in the United States and Europe offsetting concerns on demand in India and a potential increase in Iranian supplies.
U.S. West Texas Intermediate (WTI) crude fell 35 cents, or 0.5%, to $65.86 a barrel, after a rise of 14 cents on Wednesday, but still within the week's $65 to $66 range.
Brent crude had shed 42 cents, or 0.6%, to $68.45 a barrel by 0641 GMT, erasing Wednesday's gain of 22 cents. Brent has traded between $68 and $69 for most of this week.
• At 12:30 (GMT) US Preliminary GDP figures will be announced. The quarterly GDP is the broadest measure of economic activity and the primary gauge of the economy's health.
• At 12:30 (GMTUS Unemployment claims numbers will be posted. This indicator measures the number of individuals who filed for unemployment insurance for the first time during the past week
• At 14:00 (GMT) US Pending Home sales figures are due. This indicator measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
• At 14:30 (GMT) US Natural Gas Storage inventories are due. This weekly figure measures the change in the number of cubic feet of natural gas held in underground storage during the past week.
US Indices yesterday:
• Dow Jones +0.03%
• S&P 500 +0.19%
• Nasdaq +0.59%
Sources: Investing.com, forexfactory.com.