Daily Market Review - 03/04/2014

US Stock Market

Wall Street finished trading in the red due to rising tensions in Ukraine. The S&P 500 fell by 0.74%, the Dow Jones by 0.94%, and the NASDAQ lost 0.75% from its value. Technically, according to the 4-hour chart, the S&P 500 is trading between the resistance level of 1,852 and the support level of 1,831. Should it breach the resistance level,it may continue to 1,860, while crossing below the support could lead to a drop in price to around 1,820.

Gold

Gold rose by 0.94% closing at $1,350 an ounce. Technically, according to the daily chart, gold is trading above the support level of $1,343. Should the price hold, it may approach the resistance level of $1,362. Should it fail, we may see a fall to around towards $1,325. The Momentum indicator points to the positive trend.

Crude Oil

Crude Oil rose slightly by 0.17% to close at $104.66 a barrel. Technically, according to the weekly chart, Crude Oil has created a “W” pattern with a strong support level at $91. Breaching the resistance of $100 may take gold back to around $110. Should oil continue in this momentum and breach the next resistance level of $105.50, we expect the price to reach $110.

Euro (EUR)

The Euro fell against the USD after the Spanish Manufacturing report came out worse than expected at 52.5 vs. 53.2 forecast. European Central Bank President Mario Draghi said any developments in Ukraine might have repercussions outside the region. Technically, according to the 1-hour chart, the EUR/USD is moving in a negative momentum, supported by the Fibonacci Retracement which has crossed below the 50% level and is moving towards the support of 1.3710. If the pair succeeds in breaking the support, it may continue dropping towards 1.3640. The Moving Average indicator supports the bearish trend.

British Pound (GBP)

The Pound fell against the US Dollar as the Net Lending to Individuals report came out worse than expected at 2.1B vs. 2.5B forecast. Technically, the GBP/USD is trading below the resistance level of 1.6766. The pair has created a double top pattern which may cause a drop in price to around 1.6400. This may happen should the pair breach the support level of 1.6580. The RSI indicator points to a negative momentum.

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