Wall Street finished the week mixed after Federal Reserve Chair Janet Yellen stated that the Fed will take its time over raising interest rates to avoid disrupting recovery. The S&P 500 fell by 0.20%, the NASDAQ gained by 0.14%, and the Dow Jones lost 0.22% from its value. Technically, according to the daily chart, the momentum for the Dow is strongly bullish and the index is expected to keep climbing towards 17,100 with another uptrend likely before falling back.
Gold gained by 0.38%, closing at $1,280 an ounce. Technically, according to the 1-hour chart, gold is trading in a Ascending Triangle. Breaching the resistance level of $1,281 could take gold to the next resistance level at $1,291. The pair has again reentered the Bollinger Bands zone, which signals a further uptrend is likely.
Crude Oil fell by 0.33%, closing at $93.65 a barrel. Technically, according to the weekly chart, the key resistance is at $92.40, which should lead gold to attempt to breach the resistance level of $94.40. If it succeeds, a jump to around $96.70 is possible. However, breaking the support level of $94.40 might result in a fall to the next support level at $91.70.
The euro fell after European Central Bank President Mario Draghi stated that inflation in the Eurozone “exhibited significant declines on all horizons” in August. Technically, according to the weekly chart, the EUR/USD has fallen by 100 pips in the past two days, and the pair is holding below the Moving Average 10. This suggests a further fall is likely. Today, the German Ifo Business Climate is expected at 107.10 vs. 108.00 previously.
The Pound declined versus the U.S. Dollar, affected by the strength of the greenback and tensions in Ukraine. Technically, on the 4-hour chart, the GBP/USD is trading in a Descending Channel. Currently, the pair is at the bottom of the channel and a retracement towards 1.6640 is expected. UK banks are closed today and low volatility is expected.
The Canadian Dollar erased earlier losses to finish almost unchanged in response to mixed macro-economic data. The Core CPI came out at -0.10% vs. 0.10% and the Core Retail Sales at 1.50% vs. 0.40%. Technically, the resistance is at 1.0985. Should the USD/CAD cross below the support level of 1.0880, it could reach 1.0800. However, crossing the resistance level of 1,0985 might indicate a rise to the next resistance at 1.1045.