Headlines about the Ukraine war continue to determine the mood on the stock markets.
S&P 500 futures retreat slightly on Wednesday after yesterday’s rally. Investors fear that optimism about a de-escalation of the war in Ukraine may be overdone. On Tuesday, there was a dynamic breakout above the February highs. The US stock market barometer continued its upward move for a fourth straight trading day, closing at the highest level since January 18th. The employment figures from the private US employment agency ADP are the most important data today.
EURUSD is rising on Wednesday, testing a key area of resistance: the psychological 1.11 level, which failed to sustain a break for the fourth time this month yesterday, and the 50-day moving average. The moving average was last tested yesterday afternoon, but buyers failed to hold gains until the end of the session. Short-term trend is up and a break above said zone would unleash more upside potential towards 1.1246 late February highs.
The DE30 continued to come under selling pressure on Wednesday after the weak open. On Tuesday, the leading German index gained more than 2%, but retreated somewhat during the US session before hitting the 100-day moving average. In the short-term picture, the drop in price can be classified as a correction in the upward impulse. Unless the March 18 lows of 14,117 are sustainably broken, the daily chart structure remains bullish.
Maximilian Wienke, CFTE
Market Analyst at XTB
[email protected]
Disclosure according to 80 WpHG for the purpose of possible conflicts of interest
The author is currently not invested in the securities or underlyings discussed.
The authors of the publications compile that information at their own risk. Analysis and opinions are not written with reference to the specific investment objectives and needs of any particular person. Publications by XTB that comment on specific situations in the financial markets and general statements by XTB employees regarding the financial markets do not constitute, and cannot be construed as, advice to the customer by XTB. XTB shall not be liable for any loss arising directly or indirectly from any decision to act related to the content of the Publications.
Risk Notice
CFDs are complex instruments and come with a high risk of losing money quickly because of leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Investment success and profits from the past do not guarantee success in the future. Content, newsletters and communications from XTB do not represent any course of action by XTB.