Daily Market Review - 08/13/2014

US Stock Market (NASDAQ)

U.S. stocks finished the trading day in the red, as investors watched geopolitical developments and energy shares sink. The S&P 500 fell by 0.20%, the NASDAQ dropped by 0.27%, and the Dow Jones slipped 0.10%. Technically, the Double Bottom on the third Fibonacci level on the NASDAQ daily chart signals a strong positive momentum. Breaching the resistance level of 3,915 could lead the index to new highs. However, holding below this level could take it back to the support level of 3,840.

Gold

Gold prices edged higher on signs that the stand-off between Russia and Ukraine is dampening economic confidence. Technically, according to the 1-hour chart, the trend is bearish, with the MACD indicator holding below 0 and below both the Moving Averages 10 and 20. All this suggests a downtrend can be expected.

Crude Oil

Crude Oil slipped by 0.72%, closing at 97.37 a barrel after Brent Crude fell to a 13-month low and U.S. crude oil production reaching its highest level in 27 years. Technically, according to the weekly chart, oil is trading at a critical point. Holding above the support level of $96.70 could lead it back to around $100. However, breaking the support level of $96.70 could start another downtrend. Today, the Crude Oil Inventories is forecast at -0.8M versus -1.8M previous.

Euro (EUR)

The euro fell against the U.S. Dollar due to a worse than expected German ZEW Economic Sentiment, concerns about slowing growth, and worries about the impact of the Russia-Ukraine crisis. Technically, according to the 4-hour chart, the support is at 1.3335 and the EUR/USD has completed the expected retracement to the first Fibonacci level. Breaching the resistance of 1.3370 could lead the pair towards 1.3390. However, holding below this could lead it back to the support of 1.3335.

Pound (GBP)

Sterling was up by 0.10% against the U.S. Dollar following its pullout from a 2-month low, as investors positioned themselves for the Bank of England’s quarterly Inflation Report. Technically, according to the 4-hour chart, the trend for the pair is likely to remain bearish as long as the GBP/USD maintains its resistance level of 1.6805. Breaking the support level of 1.6770 could lead the pair back to 1.6700. Today, the Jobs Report is due for release and high volatility can be expected.

Australian Dollar (AUD)

The Australian Dollar strengthened versus the U.S. Dollar following the National Australia Bank’s announcement that business conditions hit a 4-year high. Technically, according to the daily chart, the AUD/USD is trading in a channel between the support level of 0.9210 and the resistance level of 0.9460. The pair has been trading near the support level of 0.9210 in the past few days and is expected to retest it again. Breaking below this level could lead the pair to the next support level at 0.8990.

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