Daily Market Review - 03/13/2014

US Stock Market

Wall Street finished the trading session mixed with the growing tension in Ukraine and the fear of a slowdown in China continuing to worry investors. The S&P 500 rose by 0.03%, the Dow Jones fell by 0.07%, and the NASDAQ added 0.42% to its value. Technically, according to the 4-hour chart, the S&P 500 has been trading in an ascending channel since February, and the price is now above the support level of 1,860. We expect the index to keep rising towards the resistance at 1,876. The Bollinger Bands 20 indicator also supports the bullish momentum.

Gold

Gold rose by 1.38% closing at $1,366 an ounce as tensions in Ukraine drive investors to seek a safe haven. Technically, according to the 4-hour chart, gold is trading above the support level of $1,352, and is struggling to reach the resistance at $1,376 – the highest level since September 2013. Should it succeed in breaching resistance, it may reach $1,390. The Momentum indicator also supports the positive momentum.

Crude Oil

Crude Oil fell by 1.35% to close at $98.13 a barrel, as the Crude Oil Inventories report came out at 6.2M vs. 2.1M forecast. Technically, according to the 4-hour chart, Crude Oil has reached the support level of $97.40 and has started to retreat. Should oil keep this support level, it may rise towards the resistance at 99.30. If it fails to do so and crosses below it, the price may drop to around 96.50.

Euro (EUR)

The euro rose against the US Dollar despite a poor showing in the Industrial Production report. Technically, according to the 1-hour chart, having reached the resistance level of 1.3912, the EUR/USD has failed to breach it. Should the pair hold this resistance, it might drop to the support level at 1.3850. However, breaching the resistance level may lead the EUR/USD to the next resistance at 1.3970.

British Pound (GBP)

The Pound remained unchanged against the US Dollar. Technically, according to the 4-hour chart, the GBP/USD has touched the support level at 1.6584 and changed the momentum to positive, supported by the Moving Average indicator. As long as the pair maintains this condition, it may reach the resistance level of 1.6700. If the pair breaks the support level, the price may drop towards 1.6500 areas.

Japanese Yen (JPY)

The Japanese Yen fell slightly against the US Dollar. Technically, according to the 1-hour chart, the USD/JPY’s general trend is bearish, with the pair attempting to break the support level of 102.52. If the pair fails to do so, it may climb towards the resistance level at 103.10. Breaching this resistance level may lead the pair to 103.70.

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