Gold Caps Longest Slump Since December 2011

US stocks experienced their steepest decline in three months, and a key gauge of market volatility spiked on Wednesday after minutes from the US Federal Reserve's most recent meeting suggested that the central bank may slow down or stop the buying of bonds sooner than had been expected. The S&P fell by 0.91%, the NASDAQ by 1.72%, and the Dow Jones by 0.84%. Technically, the NASDAQ trend is bearish, and the index is expected to keep falling towards 2,700. According to the 4-hour chart, the Dow Jones is expected to fall towards the 13,800 support level.

US Dollar (USD)
The US Dollar rose against most major currencies after minutes from the Federal Reserve’s last meeting showed that several policy makers said that the central bank should vary the pace of its bond purchases. Today, Core CPI m/m is expected to come out at 0.2% vs. 0.1% previously; Unemployment Claims are expected to come out at 353K vs. 341K previously; Existing Home Sales are expected to come out at 4.89M vs. 4.94M previously; and the Philly Fed Manufacturing Index is expected to come out at 1.1 vs. -5.8 previously.

Gold
Gold (XAU) fell, capping the longest slump since December, 2011, as economic anxiety eased in the US, eroding demand for the metal as an investment hedge. Gold fell by 2.43%, closing at $1,566 an ounce. Technically, should Gold maintain the support level of $1,555, it is expected to rise towards $1,580. According to the weekly chart, should Gold break down the support level of $1,555, it could continue dropping towards the $1,482 support level.
Last: 1,570

Resistance 1580 1600 1615
Support 1550 1525 1500


Crude Oil
Crude Oil had its steepest decline in three months amid speculation that a commodity fund is selling positions. Oil fell by 2.30%, closing at $94.85 a barrel. Technically, Oil broke the support level of $95.00 and is expected to continue its decline towards the $92.50 support level.
Last: 94.67

Resistance 95.00 96.00 97.00
Support 94.00 93.00 92.50


Euro (EUR)
The euro fell versus the US Dollar in response to the release of minutes from the Federal Reserve’s January 29-20 meeting, which suggested that policy makers remain divided about the strategy of buying bonds. Technically, according to the 8-hour chart, the EUR/USD is trading in a “Head and Shoulders” pattern, and the pair could drop towards the 1.3000 support level. Today, French Flash Manufacturing PMI is expected to come out at 43.99 vs. 42.9 previously, German Flash Manufacturing PMI at 50.4 vs. 49.8 previously. The Spanish 10-y Bond Auction is expected to be released, as well.
Last: 1.3271

Resistance 1.3360 1.3460 1.3500
Support 1.3200 1.3100 1.3000


British Pound (GBP)
The Pound declined to its lowest level in seven month versus the US Dollar after Bank of England minutes showed that more officials voted to expand asset purchases at this month’s meeting, a policy that typically debases a currency. Technically, according to the weekly chart, the GBP/USD is expected to fall towards the 1.4500 support level after breaking down the support level of 1.5270. Public Sector Net Borrowing is expected to come out today at -9.0B vs. 13.2B previously; the 10-y Bond Auction is expected to be released, as well.
Last: 1.5224

Resistance 1.5280 1.5350 1.5500
Support 1.5000 1.4950 1.4850


New Zealand dollar (NZD)
The New Zealand Dollar had its steepest decline in almost nine months against the US currency after Reserve Bank Governor Graeme Wheeler announced that the monetary authority is prepared to intervene in order to prevent the currency from strengthening. Technically, according to the daily chart, the NZD/USD will remain bullish as long as it trades above the 0.9290 support level. We can notice a bullish channel for the pair with resistance at 0.8550. No major economic data is expected to be released in New Zealand today.
Last: 0.8342

Resistance 0.8400 0.8450 0.8550
Support 0.8300 0.8250 0.8150