Investors enthusiastically met with a strong report on the US labor market, published last Friday, as well as information about the next reduction in the deficit of the US foreign trade balance.
According to the data presented, the deficit of trade in goods and services in the US in May fell by 6.6% compared to the previous month, amounting to $ 43.05 billion. Thus, the deficit of foreign trade in May was the lowest since October 2016.
At the same time, although unemployment rose to 4.0% from 3.8% in May, the number of jobs outside the country's agriculture increased by 213 000 in June (the forecast was +200 000). Also upward, NFP data for the previous two months were revised.
The number of jobs outside of US agriculture increases for 93 consecutive months, which is the longest such period in the history of such statistics, and speaks of a strong labor market.
Steady hiring of workers and low unemployment indicate that the US labor market remains a strong place in the country's economy since the end of the recession nine years ago. At present, activity in other sectors seems to be accelerating as well. Some economists predict that the country's GDP growth in the second quarter exceeded 4% per annum for the first time since 2014.
The main US stock indexes today continued to rise against the background of strong macroeconomic indicators for the US, published last week. The escalation of the US trade contradictions with other countries, for the time being, seems to be taking a back seat.
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Support and resistance levels
With the opening of the trading day on Monday, DJIA is growing. And the growth is already the fourth trading day. Strong support levels of 24100.0 (EMA200 on the daily chart), 24050.0 (Fibonacci level of 23.6% of the correction to the growth from the level of 15650.0 in the wave, which began in January 2016. The maximum of this wave and the Fibonacci 0% level are near the mark of 26620.0) have stopped falling DJIA in the end of the last month.
At the beginning of the European session, DJIA is trading at a strong resistance level of 24580.0 (EMA50 on the daily chart and EMA200 on the 4-hour chart).
Breakdown of this resistance level will confirm the resumption of the upward dynamics and bullish trend of DJIA.
Indicators OsMA and Stochastics on the 4-hour, daily charts went to the side of buyers.
The nearest growth target is resistance level 25400.0 (June highs). In the event of a breakdown of the resistance level 25400.0, the DJIA will head towards resistance levels 25750.0, 26620.0 (absolute and annual highs).
In the alternative scenario, the breakdown of the support levels 24050.0, 23800.0 (EMA50 on the weekly chart) will significantly increase the risks of breaking the bullish trend.
Support levels: 24380.0, 24100.0, 24050.0, 23800.0, 23120.0, 22450.0
Resistance levels: 24580.0, 25000.0, 25400.0, 25750.0, 26200.0, 26620.0
Trading Scenarios
Buy Stop 24610.0. Stop-Loss 24460.0. Take-Profit 25000.0, 25400.0, 25750.0, 26200.0, 26620.0
Sell Stop 24460.0. Stop-Loss 24610.0. Take-Profit 24380.0, 24100.0, 24050.0, 23800.0, 23120.0, 22450.0
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