Daily Market Review - 08/11/2014

U.S. Stock Market (NASDAQ)

Wall Street finished the trading day in the green after reports of lessening tension in Ukraine as Russia ended its military exercises near the Ukrainian border. The S&P 500 gained by 1.15%, the NASDAQ rose by 0.83%, and the Dow Jones added 1.13% to its value. Tesla Motors fell by 1.69%, closing at $248.13 a share. Technically, according to the daily chart, the NASDAQ is struggling around the support level of 3,840. Crossing below this level could lead the index to the next support at 3,785, while breaching the resistance of 3,915 could see a return to 3,980.

Gold

Gold finished the trading day almost unchanged, closing at $1,311 an ounce. Technically, according to the daily chart, gold has reached the third FIBONACCI RETRACEMENT level and is holding above the support level of $1,300. This could return gold to the resistance level of $1,340. The RSI indicator is holding above 50, which also signals a bullish momentum.

Crude Oil

Crude Oil gained by 0.32%, closing at $94.65 a barrel. Technically, according to the weekly chart, oil is still trading in a Symmetrical Triangle with the critical support level at $96.70. Currently, oil is on the lower side of the triangle and is expected to start climbing towards $100. However, breaking out of this triangle could return oil to the support level of $92.70.

Euro (EUR)

The euro rose versus the U.S. Dollar due to optimism that Spain seems to be showing signs of an economic recovery. Technically, according to the weekly chart, the key support level is at 1.3325, which is also the 50.00% FIBONACCI RETRACEMENT level. We expect the EUR/USD to start climbing this week towards 1.3500.

Pound (GBP)

The Pound declined versus the U.S. Dollar after the Trade Balance came out worse than expected at -9.40B vs. -8.90B. Technically, according to the 4-hour chart, the trend for the GBP/USD looks like remaining bearish as long as the pair holds below the resistance level of 1.6850. We expect it to maintain the negative momentum towards 1.6700. Holding below the Moving Average 50 also supports the negative momentum.

Canadian Dollar (CAD)

The Canadian dollar fell versus the U.S. Dollar in response to worse than expected jobs reports. The Employment Change came out at -0.20K vs. -8.20K, and the UNEMPLOYMENT Rate unchanged at 7.00%. Technically, according to the 1-hour chart, the USD/CAD is trading in a channel between the 1.0980 resistance level and the 1.0900 support level. The pair is expected to retest the resistance level of 1.0981, and if successful, could rise to around 1.1040. However, holding below this level may see a retracement to the 1.0900 support level.

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