The US stock market Index S&P500 sets new records

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Indexes S&P500 and Nasdaq closed at record highs thanks to strong corporate reporting, which supported the risk appetite. However, on Wednesday morning, the stock indexes are rolled back from the reached maximums. The dollar increase in area of semi-annual peaks became a limiting factor for the stock indexes. It should also pay attention to the cautious attitude of the Chinese market, contrary to the declared incentives by the government. This may be an early sign that growth has stalled.
The pressure on the single currency on Tuesday, intensified, and at some moment the quotes EURUSD fell below 1.1200 – former support level of the past five months. The rebound of the Euro at the end of the day on Tuesday looked more like an attempt intraday correction. Apparently, the downtrend of EURUSD now markedly predominant on the market. According to the technical analysis, the consolidation of the EURUSD for the day below 1.1200 could be a harbinger of further decline.
The British pound broke through on Tuesday the important support at the 200-day moving average. In the result, the GBPUSD has strengthened falling down at the time of writing up to 1.2920. It should be noted that the reduction under 1.2965 finally marked the breaking of the uptrend since December last year. The next target of the bears could be the level of 1.28 – the area of previous local minima.
Gold exposed to increased pressure, partly associated with the strengthening of the dollar. On the other hand presses increased risk appetite from investors, which greatly reduces the demand for defensive assets, including Gold. From the technical analysis, remaining near 1270, gold is testing the support of the descending channel and has not yet entered the oversold area Nevertheless, the high the chances of a local bounce within the downward trend, but the growth of markets and the strengthening dollar may continue to contribute to the pressure on the exchange rate.
_________________ Alexander Kuptsikevich,
Financial analyst,
FxPro