Daily Market Review & Financial Analysis

Euro Surges as ECB Mulls Change

July 21, 2017

U.S. Stock Market

U.S. stocks closed mixed on Thursday, as gains in Telecoms, Utilities and Healthcare were offset by losses in Basic Materials, Oil & Gas and Industrials. The Dow Jones was down by 0.13%, the S&P 500 by 0.54%, while the NASDAQ added 0.8% to its value. Technically, according to the Daily chart, the S&P 500 is trading positive above the bullish trend line. Maintaining this condition may continue the bullish momentum and raise the index towards 2,550, while breaking below the trend line may start a reversal and a fall towards 2,400 areas.

Google (GOOG)

Google fell, closing at 968.37. Technically, according to the 2-hour chart, the share is trading above the mid-band of the Bollinger Band indicator with an ADX indicator above 20. Breaching the upper line may lead Google up towards 999.00, but failing to do so may take the share down towards the lower band at 945.00.

Last: 968.73

   Resistance
   Support
979.00 989.00 999.00
959.00 952.00 945.00

U.S. Dollar (USD)

The U.S. Dollar traded lower against the other major currencies on Thursday, following a surge in the euro after European Central Bank president Mario Draghi said policymakers would discuss changes to its bond-buying scheme in September. Today, the CPI is expected unchanged at -0.1% and the Core Retail sales at 0.0% vs 1.5% previously.

Gold

Gold traded higher on Thursday, closing at $1,245 an ounce. Technically, according to the 8-hour chart, gold is trading above its resistance line with an ADX indicator above 20. Maintaining these conditions may take gold higher towards $1,260, while breaking below the line may start a bearish trend towards $1,230.

Last: 1245

   Resistance
   Support
1243 1252 1260
1240 1235 1230

Crude Oil

Crude Oil traded lower on Thursday, closing at $46.89 a barrel. Technically, according to the 8-hour chart, oil is trading below its resistance line at $47.30. Holding this condition should continue the negative trend, dropping to around $45.00. However. with the RSI indicator above 50, oil is expected to cross above the resistance line, rising towards 48.50.

Last: 46.89

   Resistance
   Support
47.30 48.00 48.50
46.00 45.50 45.00

Euro (EUR)

The euro traded higher versus the dollar on Thursday after European Central Bank President Mario Draghi said the bank would discuss the next steps in its monetary program in the fall. Technically, according to the 1-hour chart, the pair is trading above its moving average with a positive MACD indicator. Maintaining these conditions may take the pair higher towards 1.1750, while breaking below the SMA line may start a bearish trend towards 1.1550.

Last: 1.1626

   Resistance
   Support
1.1650 1.1700 1.1750
1.1600 1.1575 1.1550

British Pound (GBP)

The Pound traded lower versus the dollar, closing at 1.2969. Technically, according to the 2-hour chart, the pair is trading near the Bollinger Band’s lower line with the RSI indicator below 50. Breaking below the line may take the GBP/USD down to 1.2850. However, failing to do so may start a new trend which could take the cable towards the upper band at 1.3050.

Last: 1.2969

   Resistance
   Support
1.2990 1.3030 1.3050
1.2950 1.2900 1.2850

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