Daily Market Review - 08/20/2014

U.S. Stock Market (Dow Jones)

U.S. indices traded higher on Tuesday after the CPI data came out as expected, The Dow Jones rose by 0.48%, the S&P 500 by 0.50%, and the NASDAQ added 0.43% to its value. Technically, as long as the Dow Jones is trading above the Moving Averages 10, it is expected to keep its positive momentum towards the resistance of 17,000 points. However, crossing below 16,800 may lead the index towards 16,750 once again.

Google (GOOG)

Google rose 0.81% to close at $585.86 a share on analysts’ expectations for a better future with a higher valuation. Technically, the share is trading towards the upper band of the Bollinger Bands indicator with the next resistance level at $595.00. The RSI indicator is trading above 50, which also supports the positive trend.

Gold

Gold fell by 0.21%, closing at $1,296 an ounce affected by the positive U.S. Housing Starts. Technically, according to the daily chart, gold is hovering around the lower side of a triangle pattern. Holding this condition may lead gold towards $1,280, while branching the upper side of the triangle may take it to around $1,320.

Crude Oil

Oil dropped by 0.95%, closing at 92.85 a barrel on a soft Inventories report. Technically, according to the 4-hour chart, oil is trading is below the resistance of $95.00 and is expected to fall to around $91.50. However, the RSI indicator is forming an oversold area, and this may lead to a correction to around $94.00.

Euro (EUR)

The euro fell versus the U.S. Dollar as the ECB Account Balance came out lower at 13.1B vs. 19.8B forecast. Technically, according to the 4-hour chart, the EUR/USD has crossed below the support of 1.3335 with the MACD indicator below 0, and is expected to fall to around 1.3250. Today, the German PPI data is expected at 0.1% vs. 0.0% previously.

Pound (GBP)

The Pound fell against the U.S Dollar as the CPI came out lower than expected at 1.6% vs. 1.8% and the PPI Input at -1.6% vs. -0.8% forecast. Technically, the GBP/USD is trading in a negative channel towards 1.6550. Breaching the bearish channel may lead the pair to around 1.6750. Today, the MPC Asset Purchase Facility Votes and the MPC Official Bank Rate Votes is expected unchanged at 0-0-9.

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