US unemployment claims fell last week. In the week ended July 11, an advancde figure for seasonally adjusted initial claims was 281,000 showing a 15,000 decrease from the previous week's revised level.
Today, traders eye US data. Building permits, CPI, and Prelim consumer sentiment are due. We expect positive readings for consumer sentiment and building permits.
The metal lost momentum again. Traders focus upon the Fed's rate hike.
In Fed William words «US economy strong sign that the Fed may raise interest rates in 2015».The possibility of the US inflation rate rose to 2 percent above the end of 2016 was 50%.Compared to last week, the situation in Greece, «a little less worrying.»
BlackRock CEO Larry Fink says «Fed rate hike will make more money into the bond market, rather than less. The Fed is expected to begin normalizing interest rate path».
Today traders eye US unemployment claims and Philly Fed Manufacturing index . Fed chairwoman Yellen testifies before Senate Banking Committee.
Technical view: The pair managed to breach the previous resistance of 1.2835 today. The parallel resistance is seen at 1.2983 and 1.3063. As of now, the pair hit a high of 1.2974. In all time frames, the pair remains at bullish territory, but oscillators indicate the highly overbought market with negative mild divergences.
Intraday resistance is seen at 1.2985,1.3015 and 1.3060. From here on, the upside journey is limited. It is likely to extend towards 1.2980 or 1.3020 in the extreme case 1.3050. Use every rise to sell and hold for the next couple of days. Intraday support is found at 1.2950 and 1.2900.
Trade: Sell below 1.2950, accelerates below 1.2900
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