Daily Market Review - 08/21/2014

U.S. Stock Market (NASDAQ)

U.S. indices traded mixed yesterday after the Federal Reserve revealed that the interest rate may rise sooner than expected. The NASDAQ fell by 0.02%, the S&P 500 rose by 0.25%, and the Dow Jones added 0.35% to its value. Technically, according to the 4-hour chart, the NASDAQ is trading in a positive rally, supported by the 20-day Moving Average indicator and with positive momentum. As long as the index maintains these conditions, a rise towards 4,100 is expected.

Facebook

Facebook fell by 0.64%, closing at $74.81 a share. Technically, according to the daily chart, the share is trading above the support of $72.00, with the MACD indicator above 0. As long as it maintains this condition, a rise towards $80.00 can be expected. However, crossing below the support may start a trend reversal and take it bake to around $65.00.

Gold

Gold fell, closing at $1292 an ounce. According to the daily chart, gold is trading in a bearish momentum towards the support of $1,280. Should it succeed in breaking the support, it may drop towards $1,260. However, failing to cross below the support may start a retracement and a rise towards $1,300.

Crude Oil

Crude Oil rose, closing at $93.42 a barrel, after the Crude Oil Inventories report came out at -4.5M. Technically, according to the daily chart, oil is trading in a bearish momentum, supported by the Bollinger Bands indicator and below the resistance of $98.70. Maintaining this condition might drop oil towards $90.00, while starting a trend reversal and breaching $98.70 may take it back towards $100.00.

Euro (EUR)

The euro fell versus the U.S. Dollar, closing at 1.3259 after the German PPI report came at -0.1% vs. 0.0% forecast. Technically, the EUR/USD is trading in a bearish trend with Momentum below 0. According to the 8-hour chart, the pair broke the support of 1.3335, and may drop towards 1.3200. However, breaching 1.3335 may take it back to around 1.3400. Today, the Flash Manufacturing PMI and the Flash Services PMI reports are expected at 51.4 and 53.6 respectively.

Pound (GBP)

The Pound fell versus the U.S. Dollar, closing at 1.6597 after controversy between MPC members over monetary policy. Technically, according to the 1-hour chart, the pair is trading in a negative trend close to the lower band of the Bollinger Bands indicator. Maintaining this condition may drop the pair towards 1.6500. However, starting a retracement may lead the pair towards 1.6655, while breaching it may test 1.6770 as the new resistance level. Today, the Retail Sales report is expected at 0.4% vs. 0.1% previously.

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