Daily Market Review - 04/14/2014

US Stock Market

US indices closed the trading week negative after worse than expected earnings reports for the first quarter of 2014. The NASDAQ fell by 1.17%, the S&P 500 by 0.95%, and the Dow Jones lost 0.89% from its value. Technically, according to the daily chart, the S&P 500 is in a negative momentum, and is trading below the 50% Fibonacci Retracement level at 1811. Holding this level may lead the index towards 1,730, while breaching the resistance level at 1,811 may see a rise to 1,825.

Gold

Gold rose as Wall Street fell and investors sought it as a safe haven. Gold succeeded in maintaining its $1,318 support level and has risen for the fifth day in a row. The Moving Average 20 on the daily chart supports the bullish momentum.

Crude Oil

Crude Oil rose due to the Prelim UoM Consumer Sentiment coming out better than expected. Technically, according to the 8-hour chart, oil is expected to continue rising to $105 a barrel. Breaching this level may lead oil to around $110. The RSI indicator is around 67 which tells us that oil is overbought and a drop can be expected.

Euro (EUR)

The Euro fell against the major currencies with the drop in the stock markets last week and the rise in the US Dollar. Today, the Industrial Production m/m is expected at 0.3% vs. -0.2% previously. Technically, according to the 8-hour chart, the EUR/USD again failed to breach the 1.3900 resistance level and opened the trading week at 1.3845. The pair is now around the support level of 1.3830. Crossing below this could lead it to another drop to 1.3750. If the currency pair holds this support, it may attempt to breach the 1.3900 resistance level.

British Pound (GBP)

The Pound fell against the other majors with the rise in the US Dollar. Technically, the GBP/USD has created a double top pattern at 1.6800 and the resistance level seems very hard to breach. The pair is more likely to continue dropping towards 1.6650 and even lower to 1.6500. Today, the BRC Retail Sales Monitor y/y is expected.

Japanese Yen (JPY)

Last week’s stock market drop sent investors to the safe haven of the Japanese Yen. This is why we saw a drop in the Japanese currency last week to almost its monthly support level of 101.00. Any gains on Wall Street this week could signal a great opportunity to buy this pair for a cheap price, even if it drops below the support level.

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