Daily Market Review - 07/14/2014

US Stock Market (Dow Jones)

Wall Street finished the trading day with few gains as investors awaited the earnings season kickoff. The S&P 500 gained by 0.15%, the NASDAQ rose by 0.44%, and the Dow Jones added 0.17% to its value. Amazon jumped by 5.57% closing at $346.20 a share. Technically, according to the daily chart, the Dow is holding above the critical support level of 16,695, and the momentum continues to be positive. Breaching above the resistance of 16,915 could lead the index back to 17,000 areas.

Gold

Gold finished the trading day almost unchanged closing at $1,337 an ounce. Technically, on the 4- hour chart, gold is forming a Bullish Flag pattern and gold is expected to resume climbing towards the $1,344 resistance level once again. Breaching this level could take gold towards the key resistance of $1,385. Holding above the Moving Average 20 also supports the positive momentum.

Crude Oil

Crude Oil fell by 2.04% closing at $100.83 a barrel. Technically, on the weekly chart, oil is still trading in an Ascending Channel with the critical support at $100.40. Crossing below the psychological support level of $100 could lead oil into another downtrend.

Euro (EUR)

The euro gained a little versus the U.S. Dollar as investors speculated that the financial troubles of Banco Espirito Santo SA won’t escalate into a euro-area banking crisis. Concern over Portugal’s banking sector keeps pushing the EUR/USD down. Technically, according to the 4-hour chart, key support is located at 1.3585, which is also the 61.80% Fibonacci Retracement level. Holding above this level could lead the EUR/USD back to the 1.3640 resistance level, while crossing below it might lead the pair to the next support level at 1.3520. Today, European Central Bank President Mario Draghi is due to speak.

Pound (GBP)

The Pound finished unchanged versus the U.S. Dollar on expectations of a U.K. rate hike, pushing investors away from high yielding assets. Technically, according to the 1-hour chart, the GBP/USD is trading between the 1.7145 resistance level and the 1.7090 support level. No economic data is expected today.

Canadian Dollar (CAD)

The Canadian dollar declined versus the U.S. Dollar in response to worse than expected macro-economic data. The Employment Change came out at -9.40K vs. 20.70K and the Unemployment Rate at 7.10% vs. 7.00. Technically, according to the weekly chart, the USD/CAD is keeping the bullish momentum, rising by 100 pips (an average movement of 26 pips per day). The pair is expected to keep rising towards 1.0900.

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