Daily Market Review - 03/21/2014

US Stock Market

US indices traded higher due to the Unemployment Claims report surprising investors by coming out better than forecast. The Dow Jones rose by 0.67%, the S&P 500 by 0.60%, and the NASDAQ added 0.27% to its value. Technically, as the NASDAQ is holding below the resistance of 3,700 points, it is expected to continue its negative momentum. According to the 1-hour chart using the Bollinger Bands indicator, the index has retraced from the upper band and may fall towards the lower band at 3,650 points. However, breaching the resistance level may lead the index back to 3,750 points.

Nike

Nike shares rose by 0.15% to close at $79.27 as strong demand is helping the company’s earning revenue beat Wall Street views. Technically, according to the 1-hour chart, the momentum indicator is retracing from negative to bullish. This condition, together with the share holding above the bullish trend line, may cause a rise towards $80.00 soon.

Gold

Gold rose by 0.20% to close at $1331 an ounce. Technically, according to the daily chart, gold is trading in an ascending channel, and as long it holds above the lower line of this channel, it may return to around $1,340. However, crossing below the ascending channel may lead to a drop to around $1,320.

Crude Oil

Crude Oil fell by 0.48%, closing at $98.68 a barrel. Technically, according to the daily chart, oil is holding above the support of $98 – also the 50% Fibonacci Retracement level. Maintaining this condition may lead oil towards $100 again, while crossing below it could mean a drop toward the next support level at $97.

Euro (EUR)

The euro fell versus the US Dollar after the release of a disappointing German PPI report, and with the EU Economic Summit achieving no clear gains in Brussels. Technically, according to the daily chart, the pair has crossed below the support of 1.3820, while the MACD has changed to negative. These conditions may bring about a fall to 1.3700 soon. Expect volatility today with the second round of the EU Economic Summit in Brussels. Also, the European Current Account is expected at 18.4B vs. 21.3B.

British Pound (GBP)

The Pound fell against the US Dollar after MPC Member Martin Weale indicated no signs of rate increases. Investors turned to the US Dollar following Federal Reserve Chair Janet Yellen’s speech yesterday. Technically, the GBP/USD is trading in a range. According to the 1-hour chart, crossing below the support of 1.6485 may lead the pair towards 1.6450. However, breaching 1.6515 may send it back to 1.6600 levels. Today, the Public Sector Net Borrowing is expected at 7.8B vs. -6.4B previously.

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