Daily Market Review - 03/06/2014

US Stock Markets

US indices were mixed after the release of the ADP Non-Farm Employment Change and the Beige Book. The NASDAQ rose by 0.20%, and the Dow Jones lost 0.22% from its value. The Federal Reserve said there are no signals for inflation yet and the bad weather had taken its toll over economic growth in some states. Technically, the Dow Jones is meeting strong resistance at 16,490, and according to 8-hour chart, the index may attempt to breach this for the third time. Should it succeed, the Dow may continue rising to 16,700. Today, the US Unemployment Claims report is expected at 336K vs. 348K previously.

Gold

Gold closed unchanged at $1,336. Gold is trading in an ascending channel with the support level at 1,325. Maintaining this support could lead it towards the 1,350 resistance level, only this time it is more likely to breach this and continue to 1,375.

Crude Oil

Crude Oil has fallen sharply in the last two days following the release of the Crude Oil Inventories which came out higher than anticipated. Crude oil closed around $101 a barrel, almost hitting the Fibonacci Support level on the 8-hour chart. This could signal a drop to around $100 and a retracement from this point. Breaking $100 could lead oil to $99 and a further drop to $94.00.

Euro (EUR)

The EUR/USD traded almost unchanged despite the Retail Sales report coming out better than expected. According to 1-hour chart, the pair has created a symmetrical triangle. Over the next few hours, the pair may break either above or below this pattern. It really depends on how the European markets react to the US data and the Minimum Bid Rate, which is expected today. Breaking below 1.3690 may lead the pair to 1.3640, while breaking above 1.3760 to around 1.3820.

British Pound (GBP)

The Pound rose against most of the major currencies as the Services PMI came out higher than expected. The GBP/USD failed to cross below the support level at 1.6600 and this is a strong signal for a continuation in the pair’s bullish momentum. Today the official Bank Rate is expected at 0.50% and the Asset Purchase Facility expected unchanged at 375B. Any change may cause high volatility, especially for the Pound pairs and the FTSE. The next resistance level is at 1.6800 and the GBP/USD is expected to reach this today.

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