For the bulls, important resistance levels exist at 334.50 derived from the April 27th top, also at 355.65 – 50% Fibonacci retracement level - , and finally at 386.91 – 61.8% Fibonacci retracement level.
For the bears, important support exists at 271.44 derived from the May 11th bottom, also at 230.07 derived from August 11th 2020 bottom and finally at 180.42 derived from the 24th April 2020 top which acts as an inside support level.
• It’s a particularly busy day ahead on the economic data front. U.S Service Sector PMI and labor market numbers from the U.S will be key drivers. Key stats include ADP nonfarm employment change figures, the weekly jobless claims, and market’s favored ISM non-manufacturing PMI.
• US stocks ended slightly higher Wednesday as investors prepared for two key reports about the health of the country's labor market as the COVID-19 pandemic wears on.
The Dow Jones Industrial Average and the S&P 500 eked out small gains but managed to hover near record highs. The Nasdaq Composite narrowly avoided its second straight loss to end the day in the green.
• Central bank officials said in its Beige Book report released earlier on Wednesday that the U.S. recovery accelerated in recent weeks even as a long list of supply chain troubles, hiring difficulties, and rising prices cascaded through the country.
This comes after a strong expansion in European and U.S. factory activity in May had lifted world shares to record highs on Tuesday.
• Crude oil inventories fell last week while fuel stockpiles rose, according to two market sources, citing American Petroleum Institute figures on Wednesday. Investors await the official stats today at 14:30 GMT.
• Gold was down on Thursday morning in Asia, but remained near five-year highs, as investors digested China’s Caixin services economic data and await key U.S. economic data for clues about the economic outlook.
• At 12:15 (GMT) US Automatic Data Processing Inc (ADP) non-Farm Employment Change will be announced. This indicator ADP analyses payroll data from more than 23 million workers to derive employment growth estimations.
• At 12:30 (GMT) US Unemployment change figures are due. 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 Institute for Supply Management (ISM) Services PMI is up. This is a survey of about 300 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
• At 14:30 (GMT) US Crude Oil Inventories will be posted for the public. While this is a US indicator, it also affects the loonie due to Canada's sizable energy sector. It's the primary gauge of supply and demand imbalances in the market, which can lead to changes in production levels and price volatility.
US Indices yesterday:
• Dow Jones +0.07%
• S&P 500 +0.14%
• Nasdaq +0.14%
Sources: Investing.com, forexfactory.com,finance.yahoo.com