Daily Market Review - 03/14/2014

US Stock Market

Wall Street finished yesterday`s trading day with sharp drops due to fears of economic slowdown in China and a worsening of the crisis in Ukraine. However, investors were encouraged by positive economic data released before the opening of trading. The S&P 500 fell by 1.17%, the Dow Jones by 1.41%, and the NASDAQ lost 1.50% from its value. Technically, according to the 8-hour chart, the NASDAQ has reached the support level of 3,634 and from this point the index has started to retreat. Currently, the price is moving in a positive momentum towards the resistance at 3,675. However, the Moving Average indicator supports the long-term bearish trend.

Gold

Gold rose by 0.53% closing at $1,373 an ounce. Technically, according to the daily chart, gold is trading above the support level of $1,354 and the price is struggling to reach the resistance at $1,391. Should gold breach the resistance of $1,380, it may reach $1,390 areas. If it fails, the price may drop back to around $1,360 again.

Crude Oil

Crude Oil rose by 0.05% to close at $98.16 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 $97.53 and has started to retreat. Should it hold at this level, it may rise towards the resistance at 99.30. However, the Elliot Waves indicator points to a third wave that may appear, which will help the price to fall below the support level.

Euro (EUR)

The euro fell against the US Dollar as European Central Bank President Mario Draghi said his goal is to lower the interest rate, which will almost certainly lead to a drop in the euro. Technically, according to the 1-hour chart, the EUR/USD has strong support at 1.3844 and so far the pair has failed to cross below it. If it holds this support, it should rise towards the resistance at 1.3950. However, crossing below the support level may lead the EUR/USD towards the next support at 1.3800.

Pound (GBP)

The Pound remained unchanged against the US Dollar. Technically, according to the daily chart, the GBP/USD has created a triple top pattern with the resistance level at 1.6766. In addition, the pair has a strong support level at 1.6577. Should the price maintain this support, it may rise towards 1.6700 areas once again. If it crosses below it, the pair may drop towards 1.6500 areas.

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