Daily Market Review - 04/15/2014

US Stock Market (CitiGroup)

US indices closed in the green as the earnings reports of today for the first quarter in 2014 came out better than expected sending Wall Street to rise by almost 1%. NASDAQ rose by 0.81%, the S&P500 by 0.82% and the Dow Jones added 0.91% to its value. Citi Group has hit the forecasts and announced before open markets for net profit of $3.9 Billion or $1.23 for per share vs. $3.8B for the parallel quarter in 2013. It’s amazing how technically the share hit the support of 45 on the weekly chart and retraced to 47.50. Now we can understand that maintaining this support will keep the bullish momentum of the share that started only yesterday. The Dow Jones CFD has closed above the support of 15,922 which is also the 50% Fibonacci Retracement and signaling for bullish momentum this week.

Gold

Gold closed unchanged after stocks markets rose yesterday. The precious metal kept trading between the 50% and 38.2% Fibonacci Retracement what means the momentum remains bullish as it closed above the 50%. Should gold breaks down the support $1,317 it will drop to $1,300, while breaching the 38.2% at $1,334 will push it higher until $1,390.

Crude Oil

Oil is trading in a range between the support $103.00 and the resistance $104.50 since last week. From one hand oil should drop as Wall Street dropped last week and from the other hand the oil should raise due to sensitive situation between Russian and Ukraine. In addition to that, we mentioned at the beginning of 2014 that oil will move this year between $110 to 87$ and now it find it very difficult to rise above $104.50. If oil maintains this resistance it will drop back to $100 a barrel.

Euro (EUR)

The Euro fell against the major currencies as the Industrial Production m/m came out lower than expected in the Euro Zone. Technically and according 1-hours chart, the EUR/USD is located around the strong support of 1.3815 and breaking below this support will cause another drop until 1.3788. Maintaining this support will push the pair higher towards 1.3848. Today the Trade Balance and the German + the Euro Zone ZEW Economic Sentiment are expected to come out and will effect directly on the EUR/USD value when actual better than expected will push the pair to the resistance we mentioned before.

British Pound (GBP)

Pound dropped when markets opened this week but rose again after the Change in the asking price of homes for sale came out better than expected. GBP/USD has a strong resistance at 1.6822 on the daily chart, the pair has created bullish triangle and the RSI matches the chart, what mean the momentum remains bullish as long as the pair is trading above 1.6600. Today the Consumer Price Index is expected to come out and also the PPI and the RPI, all those macro-data are very important for the sterling value, as if the actual will come out higher than expected then investors translates it as a boost for the Central bank to increase the interest rate – a fact that cause an increase of the pound demand.

Japanese Yen (JPY)

Japanese Yen fell yesterday as the Nikkei rose following by the U.S and the European markets that closed on the green. According to 8-hours chart, the USD/JPY has a support level at 101.20 and has crossed the lower band the Bollinger Band, this is a signal that the pair will rise and maintain the support when the next resistance is located at 102.50, breaking up this resistance will push the pair higher to 103.00. However, breaking down the support at 101.20 will finish the bullish momentum and will send the USD/JPY down until 100.

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