Daily market Review - 1/9/2014

Technical Analysis

US Stock Market

U.S Indices finished mixed on Wednesday after the FOMC noted that FED officials support the end of QE3 this year. The Dow Jones fell by 0.41%, the S&P 500 by 0.02%, and the NASDAQ added 0.30% to its value. Technically, and according to the 4-hour chart, the S&P 500 is maintaining the moving Average 20 indicator, while the RSI is struggling to breach 60. Crossing below the support of 1,820 may lead the index towards 1,800 points again. However, breaching 1,850 points may lead the S&P 500 towards new highs.

Euro (EUR)

The EUR fell against the US Dollar despite the Retail Sales in the Euro Zone coming out better than expected. This was largely due to the positive outcome of the ADP Nonfarm Payrolls in the U.S. and the struggling Unemployment Rate in Europe, which came out as expected at 12.1%. Technically, according to the 4-hour chart, as long as the pair is holding below the Moving Average 20 and the RSI indicator stays below 50, the EUR/USD looks set to fall towards 1.3500 again. However, breaching resistance at 1.3600 may lead the pair towards 1.3650. Today, the Interest Rate Decision is expected unchanged at 0.25%.

British Pound (GBP)

The Pound rose versus the US Dollar as Investors responded to the Halifax HPI result, which showed that U.K house prices were falling for the first time in 11 months. Technically, according to the 8-hour chart, the pair is holding above the bullish trend line, and as long as the MACD indicator remains above 0, the GBP/USD is expected to rise towards 1.6500. Today, the Asset Purchase Facility is expected unchanged at 375B, along with the Official Bank Rate at 0.50%. The MPC Rate Statement is scheduled to be published during the day.

Twitter

Twitter shares fell by -3.53% on Wednesday to close at $59.29 due to a downgrade to Underweight by Morgan Stanley. Technically, the share is trading in a negative momentum as it has crossed below the bullish trend line. According to the 4-hour chart, the MACD indicator is holding below 0. Maintaining this position may lead the stock towards $56.50.

Gold

Gold fell by 0.25% to close at $1225 an ounce. With the upturn in the U.S economy, demand for the precious metal is decreasing. Technically, Gold has failed to breach resistance at $1,245, and is expected to fall towards $1,190. According to the 8-hour chart, the RSI indicator is continuing its fall from oversold areas, a move which supports the trend as well.