Stocks Finish Flat Friday As Euro Continues Rise Against US Dollar

Stocks finished the trading day almost flat on Friday. The S&P 500 finished unchanged, the Dow Jones rose by 0.13%, and the NASDAQ rose by 0.12%. Technically, the Dow Jones remains bullish and is near the 13,430 resistance level. A break above this level could send the pair to a year-long high of 13,500; should it drop below 13,320, it could retrace towards 13,150.

US Dollar (USD)
The US dollar weakened versus most of the major currencies as demand for higher- yielding assets rose in response to China’s higher than expected growth. The CPI in China came out at 2.5%, higher than the expected 2.3%, giving momentum to the bullish sentiment.

Gold
Gold declined by 0.7%, closing at $1,662.65 an ounce, as the commodity fell by more than $20.00 during the trading session. Technically, according to the 8-hour chart, Gold is trading in a declining channel and is expected to continue moving towards the $1,640.00 support level.

Crude Oil
Crude Oil finished the trading day almost unchanged at $93.80 a barrel after testing the $92.65 support level. Technically, Oil has been trading for the last week in a channel between the $92.65 support level and the $94.00 resistance level. Should Oil cross $94.00, it could resume its uptrend.

Euro (EUR)
The euro continued rising versus the US dollar after Germany’s Chancellor said that the worst is over for the euro, after a 3-year debt crisis. Technically, the EUR/USD has crossed above the 1.33 resistance level and is moving towards the 1.35 level. Industrial Production is expected at 0.2% versus -1.4% previously.

British Pound (GBP)
The pound declined versus the US dollar and most other major currencies amid concern about growth. Technically, the GBP/USD has a strong resistance level of 1.62 and is expected to continue declining towards the support level of 1.60. No economic data is expected to be released today in the UK.

Canadian Dollar (CAD)
The Canadian dollar gained versus the US dollar as traders speculated that faster than expected growth in China will raise demand for Canada’s commodity exports. Technically, the outlook for the USD/CAD is bearish as long as the pair keeps trading below the 0.99 resistance level. The BOC Business Outlook Survey will be released today.