Yesterday, at the Fed’s Meeting officials discussed the rise of interest rates. Initially, when the news of this topic discussion appeared, it led to a risk aversion: the growth of stock markets gave a way to decline, the strengthening of the Dollar Index was noted, as well as the rise in yields on 10-year Treasuries. Soon after that, the appetite for risky game was back, and markets played losses. However, some experts pointed out that the tone of discussion of the current situation in the U.S. economy was "hard" enough.
S&P came closer to its all-time high of $1.991, after settling the bottom of correction at $1.905. It’d be nice to see a consolidation or a pullback at this point, before it brakes the potential resistance, as the price seems to be slightly removed from the short-term moving averages 8/21 EMA ($1.956-.64).
Technological Sector had been the strongest one during the last rally, but Nasdaq closed in symbolic red, it was weaker than other sectors did. As a result, Microsoft shares lost almost 1%. It’s a false high to form here with a resistance of $45.40. Yesterdays bottom of $44.90 penetration may lead to a pullback with a first target of $44.50, where 8 EMA is, and $43.94 (21 EMA) after that.
Coca-Cola shares rose up to a level, where they previously started to fall when announced a bad previous quarter report. But then rebounded amid growing market and news that the company is to buy a large stake in the energy drinks production company Monster Beverages. Resistance zone of $41.33-.48, the breakdown of yesterday's bottom can attract active sellers. The medium-term goal of $40.66, from which shares opened with a gap up.
EUR/USD today forms the reversal candle which is usually followed by two more days of growth. On the hourly chart buyers resumed 8/21 EMA, that controlled the fall all the time after the breakdown of an important support level of 1.33378. Now, buyers have to keep the price above 1.32541 and 1.32658 in order to keep the attention of active buyers.