In general, week from 30th of June to 4th of July was positive for Global markets. Indexes gained 1-2% mainly on better then expected numbers of work places from U.S. Dow Jones above 17,000 with technology index Nasdaq at 14 years highs, after the government reported the economy created 288,000 jobs in June and the unemployment rate fell to 1.6%. A stock or index hitting new high has no overhead supply to contend with. When a stock or index reaches a new high supported by big volume clues, it has been propelled upward by institutions taking positions because they believe that fundamentals are solid and the prospects for the future are even better.
The European Union kept Monetary Policy unchanged as expected following last month's measures to stimulate the economy. CAC40 bounced off 4407 where 21 EMA is situated. It could be our new point of reference. Week before sellers managed to broke down accelerated trend, if they still want to keep control on price they should defend break down point 4500. After the big run in 2013-14 it may take a pause and pull back a bit deeper to 50 EMA and macro trendline close to 4300.
The U.S. Dollar gained against major currencies. The Work places report is bullish for the U.S. Dollar, and a headwind for Gold. Dollar Index bounced off support zone that is in tact since April 2014. Now we have green reversal candle that can lead to something bigger, if next week buyers lift prices above previous high of that candle. U.S. Dollar is still under pressure below key moving averages. I will use my levels of support/resistance and pivot points to measure price action.
GBP/USD had a decent week closing with another outside green candle. This pair entered the bull channel since September 2013. Those trends on weekly charts can last for long time and it is loosing game if you try to beat them. 21 EMA can act like support, but first it should go through 8 EMA. New resistance at 1.71784.
Apple after two weeks of flagging bounced off 8 EMA on weekly, broke up bear channel and approached to its $95.05 high. I think at this point it will be healthy to see some kind of consolidation above $92.00 before breaking to new highs. Above $94.04 it could attract more buying and will keep active traders' interest in this stock.
Gold closed week with small gains inside candle, sitting on its intermediate resistance level $1331 and building upper-level base after it found support at $1241 and regained short term moving averages 8/21. Here you can stay tactical and trade it both sides as it is still in major consolidation after huge move up then sell off. Break of $1300-05 support zone or $1331 resistance could lead to another directional movement and will give us clues where it is heading.
The most important news that investors are awaiting next week are:
July 9 - FOMC Meeting Minutes
July 9 - China CPI
July 10 - Trade Balance from China
July 10 - Unemployment Claims from US
July 11 - Job report from Canada