Daily Market Review - 06/24/2014

US Stock Market (Dow Jones)

US stock markets finished the trading mixed with the NASDAQ adding 0.07% to its value. The Dow Jones fell by 0.06%, and the S&P 500 by 0.01%. The bearish momentum in the European market has affected the U.S stock market, making it harder to rise. Technically, according to the 4-hour chart, the Dow Jones is still holding the Symmetrical Triangle pattern, with the support at 16,800 and the resistance at 16,875. Holding above the support may keep the pattern, while crossing below it could take the index to 16,700 and the momentum to bearish.

Gold

Gold rose by almost four dollars an ounce to close at $1,317. Technically, according to the daily chart using Fibonacci Retracement, gold is holding above the 50% retracement. Maintaining this condition today could send gold to its next resistance level at $1,333. Crossing below $1,308 may take it back to $1,280.

Oil

Crude oil failed to breach the resistance at $107.60 and created a Double Top on the 8-hour chart. Crossing below the next support level at $105 will send oil down towards $102. The volatile situation in Iraq is being reflected in the oil price, and any further worsening of the situation there could lead to a sharp rise in oil and commodity prices.

Euro (EUR)

The euro rose versus the US Dollar despite the Flash Manufacturing PMI in both Germany and France coming out worse than expected. Technically, according to the 8-hour chart, the EUR/USD is trading in a bullish channel and is likely to continue until it hits the resistance at 1.3680. However, crossing below the 1.3570 support level could take the pair back to 1.3510. Today, the German Ifo Business Climate is expected at 110.3 vs. 110.4 previously.

Pound (GBP)

The Pound rose prior to the Inflation Report Hearing today and is holding above the 1.7000 support level. Technically, according to the 30-minute chart, the GBP/USD is creating a Double Bottom pattern, and hitting 1.7060 will complete the movement. However, worse than expected UK macro-economic data could take the pair below the 1.7000 support level to 1.6950. Today, the BBA Mortgage Approvals is expected at 41.3 vs. 42.2K previously.

Australian Dollar (AUD)

The Australian Dollar rose after the HSBC Flash Manufacturing PMI in China came out better than forecast. The Australian economy is very sensitive in this area, as China is Australia’s biggest commodity trading partner. Technically, the AUD/USD is struggling to breach the 0.9450 resistance level. Succeeding could push the pair higher to 0.9750.

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