Daily Market Review - 04/12/2014

US Stock Market

Wall Street finished Thursday’s trading in the red with the NASDAQ losing 3.10% from its value – by far its biggest drop in two-and-a-half years. The Dow Jones fell by 1.62% and the S&P 500 by 2.09%. Technically, the S&P 500 fell below the resistance of 1,830 points, with the MACD remaining below 0 on the 4-hour chart. As long as the index holds these conditions it is expected to continue to fall to around 1,810 points. However, breaching above the resistance level may lead the index back to 1,850.

eBay

eBay shares fell by 3.24%, closing at $54.08 after announcing that it has agreed to appoint an independent external director for its subsidiary PayPal. Technically, according to the daily chart, as long as the share holds below the Moving Average 20 indicator and continues to trade below the bullish trend line, it is expected to continue to decline towards $51.00.

Gold

Gold rose by 0.53%, closing at $1318 an ounce as US indices declined sharply. Technically, according to the 4-hour chart, gold failed to breach the resistance of $1,323, which is also the 38.20% Fibonacci Retracement level. As long as gold remains below this level, it is expected to fall to around $1,310. However, breaching resistance may lead gold to test $1,336 as the next resistance level.

Crude Oil

Crude Oil traded almost unchanged, closing at $103.39 a barrel. Technically, according to the 1-hour chart, oil is trading between the resistance of $103.65 and the support of $103.12 with a blackout expected soon. Breaching above the resistance level may lead oil towards $105.00, while crossing below the support level may take it back to around $102.00.

Euro (EUR)

The Euro rose versus the US Dollar despite the encouraging US economic data overshadowing a better than estimated ECB Monthly Bulletin report. Technically, according to the daily chart, the pair is trading in a positive momentum towards 1.3930. The RSI indicator shows positive strength above 50, which also supports the trend. Failing to breach this level may send the pair back to the support level of 1.3670. No economic data is expected today.

Pound (GBP)

The Pound fell against the US Dollar over a disappointing Asset Purchase Facility report, which remained unchanged at 375B. Also, the Bank of England gave investors little reason to turn back to the local currency after it left the Official Bank Rate unchanged at 0.50%. Technically, the GBP/USD has breached yet failed to remain above the upper band of the Bollinger Bands indicator. As long as the pair maintains this condition, it is expected to drop towards 1.6700. No economic data is expected today.

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