Dow Bull Flag Consolidation ahead of US Unemployment data
Dow appears f to be forming Bull Flag consolidation in 4H timeframe ahead of today US Unemployment Data which is due for release at 1.30pm BST. US Unemployment Rate, Nonfarm Payrolls and Average Hourly Earnings for July are all due for release at the same time. Unemployment rate is forecasted to drop to 3.9% from current 4%. Nonfarm payrolls are forecasted to come in at 195K from previously published 213K and Average hourly earnings to stay unchanged at 2.7% YoY. These figures will impact volatility in US Equity Indices and also in USD currency Crosses.
Key level to watch is at 25380 resistance. Confirmed breakout higher appears Bullish targeting upside resistances at 25491 followed by 25600 and 25822 levels. Alternatively a negative reaction to unemployment figures could cause the dip lower initially challenging support at 25121 level. Confirmed loss of that level would change the outlook targeting additional downside supports at 24990 followed by 24893 levels.
Gold downtrend intact capped by resistance at 1215 level.
Gold is down trending, currently trading below 20, 50 and also 200 Moving averages in 4hourly timeframe. Price action is additionally capped by falling resistance trendline pointing to the initial upside resistance at 1215 level. Price action appears to be Bearish below targeting downside supports at 1200 followed by 1189 and 1180-1178 levels. Alternatively oversold bounce backs which could be triggered by the market reaction to todays US Unemployment figures are initially capped by resistance at 1215. Only a confirmed breakout above would change the current Bearish outlook targeting additional upside resistances at 1225 followed by 1232 and 1242 levels.