Crude Oil Falls by 1.79% Amid Turmoil in Cyprus

Wall Street closed the trading day mixed after the Cypriot Parliament rejected the bank-deposit levy, increasing investors’ anxiety about the possibility of the country going bankrupt. The Dow Jones gained by 0.05%, the NASDAQ declined by 0.26%, and the S&P 500 lost 0.24%. Citigroup fell by 1.77%, closing at $45.80. Technically, according to the 4-hour chart, the S&P has a strong support level at 1,530; should the index break below this level, it could hit the 1,523 support level. The trend for the NASDAQ will remain strongly bullish as long as the index trades above the support level of 2,750.

US Dollar (USD)
The US Dollar rose against most of the major currencies amid anxiety about the economic crisis in the Eurozone, which pushed investors towards the safe-haven greenback. Building Permits came out as expected at 0.95M. Today’s Interest Rate Decision is expected to remain unchanged at 0.25%. The FOMC Economic Projections and the FOMC Statement should be released today.

Gold
Gold gained by 0.46%, closing at $1,613 an ounce. Technically, according to the 4-hour chart, the precious metal is keeping its positive momentum and is expected to test the resistance level of $1,619. The fact that the RSI indicator is holding above 50 supports the bullish trend.
Last: 1611

Resistance 1619 1634 1653
Support 1601 1595 1576


Crude Oil
Crude Oil fell by 1.79%, closing at $92.50 a barrel in response to the turmoil in Cyprus. Technically, Oil is expected to maintain the bearish trend and retest the support level of $91.90; should the commodity break below this level, it could again move towards the next support level, at $91.60. Crude Oil Inventories are expected to come out at 1.80M vs. 2.60M previously.
Last: 92.65

Resistance 92.90 93.60 94.30
Support 92.30 91.90 91.60



Euro (EUR)
The euro dropped versus the US Dollar after Cyprus rejected the European Union’s proposal to levy taxes on bank deposits. The German ZEW Economic Sentiment came out at 48.50, better than the expected 47.90. Technically, the trend for the EUR/USD is strongly bearish. The EUR/USD has broken the support level of 1.2880, and the pair will keep its negative momentum, possibly moving towards the support level of 1.2700, should it hold above the support level of 1.2800 and should the RSI Indicator hold below 50. The German PPI is expected to come out at 0.20% vs. 0.80% previously, the Current Account at 7.90B vs. 13.90B previously.
Last: 1.2875

Resistance 1.2920 1.2975 1.3030
Support 1.2850 1.2770 1.2700



British Pound (GBP)
The Pound finished the trading day unchanged versus the US Dollar as the uncertainty surrounding the situation in Cyprus pushed investors towards safe-haven UK assets. The CPI was released as expected at 2.80%, and the PPI Input came out better than expected at 3.20% vs. 1.70%. Technically, the Pound is trading in a channel between the support level of 1.5070 and the resistance level of 1.5175; should the GBP/USD break this level, it could move towards to the next support level of 1.4920. Today, the Claimant Count Change is expected to come out at -5.20K vs. -12.50K previously. The MPC Meeting Minutes and the Annual Budget should be released today.
Last: 1.5095

Resistance 1.5140 1.5175 1.5220
Support 1.5075 1.5000 1.4910


Canadian Dollar (CAD)
The Canadian Dollar declined versus the US Dollar after Manufacturing Sales came out worse than expected, at -0.20% vs. 0.70%. Technically, according to the four-hour chart using "Fibonacci Retracement," the pair has finished the expected retracement; should the pair cross above the resistance level of 1.0280, it could move towards the 1.0330 level. No important economic data is expected to be released in Canada today.
Last: 1.0265

Resistance 1.0280 1.0315 1.0345
Support 1.0220 1.0180 1.0110