Daily Market Review 31 of August

Equities are weak ahead of Bernanke’s speech today. Their technical picture doesn’t look good as well. The Dow Jones (13000.71, -0.81%) as anticipated has broken its support at 13096 and is moving down approaching 12950 in the short run. The Nikkei (8884.51, -1.11%) also crossed its support level of 9000 and has moved close to the target of 8880. If it closes below this important level, we might see it going further down towards 8775 which is its next support level. Dax (6895.49, -1.64%) broke its 6950 Support and has moved down. The next goal is 6825 in the short run. Oil (94.63, +0.01%) dropped to 93.95 yesterday. At the moment Oil looks weak and soon it might fall to 92 in the short term. Gold (1654, -0.05%) is taking advantage of support at 1650 and a break below can bring the rate even lower to 1630-20. Silver (30.35, -0.06%) is about to face the resistance at 30.50 and at the moment there is no certainty whether the resistance will be overcome or it will hold. There is no good momentum currently and that means that an abrupt and quick move might happen in any direction.


Dollar is trading strong due to the news about Spanish debt. As a result Moody might downgrade Spain’s debt rating. The market is looking forward to Bernanke’s speech today that might trigger a lot of changes.


The Euro (1.2512) is in 1.2465-2600 range and has dropped within boundaries yesterday. Today it has chances to grow a bit. Bernanke’s speech might help it to regain some value.


The Euro-Yen (98.22) is in 97.70-99.00 range though the bias is bullish and it might get to 100 and above on the upside.