U.S. stocks climbed up this week, with the S&P500 toppling another record, as investors embraced upbeat economic reports and looked to a dovish message from Federal Reserve Chair Janet Yellen when she talks about the labor market in Jackson Hole on Friday.
Tensions in Iraq continue to play on investors' minds after the execution of a U.S. journalist earlier in the week. Meanwhile, the fighting continued in the east of Ukraine on Thursday between government forces and pro-Russian separatists. Ukrainian President Petro Poroshenko has said he would urge his Russian counterpart, Vladimir Putin, to try to rein in the separatists when they meet for talks next week.
The Dollar held steady against the currencies of major U.S. trading partners. EUR/USD forms the reversal candle which is usually followed by more days of growth. On the hourly chart buyers resumed 8/21 EMA, that controlled the fall all the time after the breakdown of an important support level of 1.33378. Now, buyers have to keep the price above 1.32550 and 1.32419 in order to keep the attention of active buyers.
Google shows relative weakness when building series of lower highs while market is at its historical highs. This relative weakness could lead to deeper correction. More reasonable level of support is $567.30, then we have $547-$551 area where buying could resume.
Bank of America Corp.
Bank of America Corp. agreed to pay about $16.7 billion to end federal and state probes into mortgage bond sales, the harshest penalty yet related to loans that fueled the 2008 financial crisis.The settlement, which includes $9.65 billion in cash and $7 billion in consumer relief, resolves civil investigations by government prosecutors. It is the largest civil settlement with a single entity in history.
On that news BAC resolved to up-side its long-term wedge with big, ignited candle that closed on highs righ in front of $16.22 resistance. If it holds 1/3-1/2 of this move, than we will see its continuation.
Next week important events calendar: Aug 25 — Aug 29
EUR German Business Climate
USD New Home Sales
NZD Trade Balance
USD Consumer Confidence
EUR German CPI
USD Prelim GDP
USD Unemployment Claims
USD Pending Home Sales
EUR CPI Flash Estimates