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• US earnings the key component of today’s jobs report;
• US dollar index languishing at 15 month lows, testing major support;
• GBPUSD recovering after BoE induced selling.

Financial markets are trading very flat early on Friday as traders eagerly await the July jobs data from the US.

Traders are yet to buy into the Fed’s plans for another interest rate hike this year – December being the most likely date – which is hardly surprising given the data seen in the first half, particularly on the inflation front. With that in mind, while the unemployment number is likely to write the headlines and the jobs number will be the initial focus, earnings growth is key to today’s report, as well as those for the rest of the year.

Despite a number of metrics suggesting the slack in the US labour market has been significantly reduced, wage growth continues to elude the workforce, to the annoyance of the Federal Reserve. With higher wages being crucial to further progress both on the economy and its inflation target, the central bank will be hoping that the numbers start to improve, having actually softened since the start of the year.

Should we continue to see soft wage growth and inflation running well below target as a result, the Fed may be forced to delay plans on future rate hikes and instead focus on reducing its balance sheet. Given the clear desire to get interest rates closer to 3%, this is obviously a very undesirable situation, although it should be noted that the US is well ahead of others on this.

The US dollar is continuing to languish at 15 month lows as a result of the belief that future rate increases will have to now be much slower, especially as Donald Trump has so far done little to boost the economy, as was expected. This is, of course, also a reflection of traders becoming more bullish on some of its peers as central banks elsewhere start to pivot towards a tightening position. Still the dollar index currently resides in a major support zone and a break below 92 could trigger much sharper losses.

Yesterday’s Bank of England meeting aided the greenback against the pound, with the pair falling back close to 1.31 as traders took the view that any rate increases are once again not a near-term concern. Even still, the pound continues to look bullish against the dollar for now, unless we see a break below 1.30, at which point we could see a dollar resurgence. This would make sense if we are going to see another strong rebound off the dollar index support zone.

4H count on USDJPY is showing us a bigger degree red wave C) as part of a big triangle pattern in the making. Aperrantly yesterday's bounce was a fake one, and resulted as only a temporary sub-wave iv within black wave C of C). That said, ideally wave C is now trading in final stages of a bigger three wave bearish move and can search for a base near the Fibonacci ratios of 61.8/78.6 in sessions ahead. A minor five wave bounce would later signal a change in trend.

USDJPY, 4H

Below we have a bigger picture of the USDJPY, which points towards more gains.

USDJPY, Daily

Crude oil is consolidating lower on profit taking. Hourly support is given at 45.40 (24/07/2017 low). Strong resistance can be found at 50.41 (31/07/2017). Expected to show further consolidation before another leg higher.

In the long-term, crude oil has recovered after its sharp decline last year. However, we consider that further weakness are very likely. Strong support lies at 35.24 (05/04/2016) while resistance can now be found at 55.24 (03/01/2017 high).

Silver's bullish pressures are fading after the bounce from hourly support given at 15.18 (10/07/2017 low). Hourly resistance is given at 16.94 (02/08/2017 high). The commodity is set to further consolidate.

In the long-term, the death cross indicates that further downsides are very likely. Resistance is located at 25.11 (28/08/2013 high). Strong support can be found at 11.75 (20/04/2009).

Gold is consolidating lower. Strong support is given at 1204 10/07/2017 high). Hourly resistance is given at 1274 (01/08/2017 high). Expected to show continued another leg higher.

In the long-term, the technical structure suggests that there is a growing upside momentum. A break of 1392 (17/03/2014) is necessary ton confirm it, A major support can be found at 1045 (05/02/2010 low)

Bitcoin's volatility is increasing. Strong resistance can be found around 3000 (12/06/2017 high) and hourly support lies at 2403 (26/07/2017 low). Short-term bullish move is expected.

In the long-term, the digital currency has had an exponential growth. There are decent likelihood that the asset will consolidate above $1500. Long-term support is given at $1464 (04/05/2017 low).

EUR/CHF's buying pressures are very important and is trading below 1.15. Hourly support is located at a distance at 1.0984 (13/07/2017 low). Road is wide-open for further strengthening.

In the longer term, the technical structure has reversed. Resistance at 1.1200 (04/02/2015 high) has been broken. Yet,the ECB's QE programme is likely to cause persistent selling pressures on the euro, which should weigh on EUR/CHF. Supports can be found at 1.0184 (28/01/2015 low) and 1.0082 (27/01/2015 low).

EUR/GBP is trading around its highest levels of the year. The pair is consolidating. Hourly support is given at a distance at 0.8742 (16/06/2017 low). Downside risks are nonetheless important.

In the long-term, the pair has largely recovered from recent lows in 2015. The technical structure suggests a growing upside momentum. The pair is trading above from its 200 DMA. Strong resistance can be found at 0.9500 psychological level.

AUD/USD's technical structure has finally not reversed. Hourly resistance is given at 0.8066 (27/07/2017 high). Hourly support given at 0.7875 (21/07/2017 low). Expected to show further consolidation.

In the long-term, we are waiting for further signs that the current downtrend is ending. Key supports stand at 0.6009 (31/10/2008 low) . A break of the key resistance at 0.8295 (15/01/2015 high) is needed to invalidate our long-term bearish view.

USD/CAD's bearish momentum is showing ending signals. Hourly resistance is given at 1.2619 (03/08/2017). Expected to show continued consolidation above 1.2400.

In the longer term, the pair has broken longterm support that can be found at 1.2461 (16/03/2015 low) before bouncing back. Strong resistance is given at 1.4690 (22/01/2016 high). The pair should head further lower.