Cautious Remarks from BOE Governor - GBP Falls Against US Dollar

Wall Street closed the trading day mixed after US Core Retail Sales came out better than expected at 0.20% vs. 0.10%. The Dow Jones declined by -0.20%, the NASDAQ gained by 0.20%, and the S&P 500 declined by 0.10%. In addition, Amazon (AMZN) climbed by 3.40%, closing at $269.80. Technically, the Dow Jones dropped after facing the resistance level of 14,000; the index is expected to retest the support level of 13,880. The NASDAQ is moving in a channel between the support level of 2,760 and the resistance level of 2,780.

US Dollar (USD)
The US Dollar traded mixed against the major currencies as investors sought safe assets ahead of the G20 meetings in Moscow on Friday. Retail Sales came out as expected at 0.10%, and Import Prices came out worse than expected at 0.60% vs. 0.80%. Today, Unemployment Claims are expected to come out at 361K vs. 366K previously.

Gold
Gold finished the trading day with a slight decline of 0.55%, closing at $1,642 an ounce. Technically, strong support is located at $1,640. Breaking this level could lead the precious metal towards $1,625; failing to do so could lead it back to the $1,652 resistance level.
Last: 1644

Resistance 1654 1669 1683
Support 1641 1625 1610


Crude Oil
Crude Oil declined by 0.44%, closing at $97.10 a barrel after Crude Oil Inventories came out at 0.60M vs. 2.40M. According to the weekly chart, Crude Oil is trading in a ‘W Pattern,” and breaching above the resistance level of 98.20 could lead the commodity towards 99.20.
Last: 97.10

Resistance 97.50 98.20 99.20
Support 96.70 96.40 95.80


Euro (EUR)
The euro erased earlier gains and finished unchanged versus most of the major currencies as Portugal’s jobless rate rose to its highest level in the history of the shared currency. Industrial Production came out at 0.7%, worse than the expected 0.3%. Technically, according to the four-hour chart using "Fibonacci retracement," the EUR/USD has reached the second level; should the pair not cross above the resistance level of 1.3530, it could retest the support level of 1.3370 once again. German Prelim GDP is expected to come out at -0.50% vs. 0.20% previously, and the Flash GDP is expected to come out at -0.40% vs. -0.10% previously.
Last: 1.3450

Resistance 1.3495 1.3520 1.3580
Support 1.3435 1.3370 1.3340


British Pound (GBP)
The Pound fell versus the US Dollar after Bank of England Governor Mervyn King said that economic growth in the UK is likely to be weak and that the economy faces “big challenges." Technically, the trend for the GBP/USD is strongly bearish, and the currency pair is expected to test the support level of 1.5470; should the GPB/USD break this level, it could move towards 1.5400. The fact that the RSI indicator is holding below 50 supports the bearish trend as well. No major economic data will be released in England today.
Last: 1.5535

Resistance 1.5575 1.5650 1.5690
Support 1.5470 1.5440 1.5350


New Zealand Dollar (NZD)
The New Zealand Dollar rose versus the US Dollar amid news that the country’s manufacturing industry expanded at its fastest pace since May. Technically, according to the daily chart, we can see a strong resistance level at 0.8490; should the pair cross above this level, it could reach 0.8575—its highest level since February, 2012. Retail Sales are expected to be released today.
Last: 0.8470

Resistance 0.8490 0.8575 0.8640
Support 0.8450 0.8395 0.8340