Daily Market Review - 06/12/2014

US Stock Market (S&P 500)

US indices traded lower yesterday after the World Bank cut its 2014 global growth forecast from 3.20% to 2.80%. The Dow Jones fell by 0.60%, the S&P 500 by 0.35%, and the NASDAQ lost 0.14% from its value. Technically, according to the daily chart, as long as the S&P 500 is holding above the Moving Averages 20, and with the MACD above 0, it is expected to rise to 1,960. However, crossing below 1,920 may lead index back to the support level of 1,890.

Boeing

Boeing shares fell by 2.30%, closing at $134.10. Technically, according to the 4-hour chart, the share is trading above the support of $133.90, and is expected to close yesterday’s gap and rise to around $137.00. However, breaking this support may lead the share towards the support at $130.00.

Gold

Gold rose by 0.10%, closing at $1261 an ounce. Technically, according to the 4-hour chart, the key resistance level is at $1,265, which is also the 50% Fibonacci Retracement level. Holding below this level could lead gold back to the $1,250 support level. However, breaching it could take gold to the next Fibonacci level at $1,272.

Crude Oil

Crude Oil rose by 0.15%, closing at $104.50 a barrel on a strong Crude Oil Inventories report (-2.6M vs. -1.3M). Technically, according to the daily chart, oil is trading below the $104.75 resistance level. A retest is expected soon with a positive RSI indicator above 50. Breaching the resistance on the fourth attempt may lead oil to a new uptrend towards $108. However, holding below this critical resistance could lead oil back to around $102.00.

Euro (EUR)

The euro fell versus the US Dollar after two major European companies, Deutsche Lufthansa AG and Vallourec SA, cut their profit forecasts, pushing investors towards the safe heaven of the dollar. Technically, according to the 4-hour chart, the EUR/USD is moving in a Descending Channel. The pair is at the bottom of the channel and is expected to start climbing towards 1.3600. However, the EUR/USD’s main trend is strongly bearish and is expected to test the support level of 1.3480 in the next few days. Today, the Industrial Production report is expected at 0.5% vs. -0.3% previously.

Pound (GBP)

The Pound rose against the US Dollar following the release of better than expected macro-economic data. The Claimant Count Change came out at -27.4K vs. -25.0K forecast, and the Unemployment Rate at 6.6% vs. 6.7%. Technically, holding below the resistance level of 1.6840 could lead the pair back to the support of 1.6690. However, breaching this could take the Cable back to around 1.6900.

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