U.S. Stock Market
U.S. stocks traded lower as investors paused following a run of gains tied to optimism over easing trade tensions and the prospect of an interest rate cut by the Federal Reserve. The Dow Jones fell by 0.05%, the S&P 500 dropped 0.03%, and the NASDAQ lost 0.01% of its value. Technically, according to the daily chart, the Dow is trading below a strong resistance of 26,770, which makes a fall to around 25,800 likely. However, breaching above the line may lead to a rise towards 27,000.
Facebook shares rose 1.88%, closing at $178.13, after a leading analyst dubbed it the cheapest internet stock. On the 1-hour chart, it is trading below the resistance of $178.70. This should push the price down towards $172.00, although crossing above the line could take it back up to around $183.00.
U.S. Dollar (USD)
The U.S. dollar traded almost unchanged against its rivals on Tuesday after the Federal Reserve came in for another barrage of criticism from President Donald Trump for allegedly keeping interest rates too high. The Core PPI came in unchanged at 0.2% and the PPI was at 0.1% accordingly.
Gold fell, closing at $1,326. According to the 1-hour chart, the metal is trading above the support at $1,319 with a positive RSI indicator above 50. Under these conditions, the price should rise towards $1,340 but dipping below the line might start a strong reversal to around $1,305.
Crude Oil fell, closing at $53.01, after the American Petroleum Institute (API) reported a significant and surprising rise in inventories. On the daily chart, Oil is trading below a very critical resistance line at $55.00 which may lead to a drop to around $51.00. However, breaching above the line could start a positive trend towards $56.00.
The euro traded higher versus the dollar, closing at 1.1327. On the 8-hour chart, the EUR/USD is holding below a bearish trend line and a drop to around 1.1200 could be on the cards. Crossing above the line, on the other hand, should push the pair up towards 1.1450.
British Pound (GBP)
The pound traded higher versus the dollar, closing at 1.2718. On the 8-hour chart, the GBP/USD is trading below the resistance of 1.2770. This could set off a negative trend leading down to around 1.2600. However, breaching above the line may lead to a rise towards 1.2900.