Markets rose as investors pushed back trade concerns and looked ahead to earnings results.
Unemployment claims fell to a nine-week low of 214,000, while While U.S. consumer prices advanced less than expected in June among falling utility prices and a record drop in hotel costs, the gauge excluding food and energy costs rose 0.2%.
But the annual consumer inflation rate rose to 2.9% in June. To support the argument for a faster pace of monetary tightening by the Federal Reserve.
President Donald Trump claimed a personal victory at the NATO summit on Thursday after telling European allies to increase spending or lose Washington’s support, which forced leaders huddle in a crisis session with the U.S. president.
Trump declared his commitment to a Western alliance built on U.S. military might that has stood up to Moscow since World War Two.
On the daily chart, the price has returned to the red resistance zone with shaping before the reversal double top.
Price has formed another reversal pattern to assure the bearish bias with the wedge.
Followed by a break beneath an ascending trend on RSI, the index is supposed to have its way back to the support zone 93.2-92.6.
On the daily chart, the pair bounced back from the resistance 0.7455, to retest the green support zone again.
Followed by divergence on RSI, our bullish view is still the same: Heading towards the combination of levels of descending trend, ascending channel and resistance zone at 0.7655-0.774.
On 4-hour chart, as we expected before, the price broke the resistance and the neckline of the head & shoulders pattern at 84.35, to assure the bullish momentum also powered by wedge & Gartley harmonic patterns.
The price is expected to target the resistance 87.
On the daily chart, the price retested the green support zone 0.682-0.6775, followed by divergence in RSI.
An AB=CD harmonic pattern has been shaped to reinforce the bounce.
The price is supposed to head back to the top of the descending channel with the resistance zone at 0.697-0.703.