Risk-off moods can be spotted on the equity and commodities markets following release of FOMC minutes yesterday. Document showed that FOMC members think it is appropriate to begin QE tapering this year. Markets took it as a hawkish message. USD strengthened and pressure commodities and US indices in turn.
Taking a look at US100 at H4 interval, we can see that the index broke below the key 100-period EMA, that was earlier used as a support. According to classic technical analysis, as long as the price sits below the moving average, there is a risk of deeper correction. The nearest important support to watch can be found in the 14,620 pts area, where the lower limit of the Overbalance structure can be found.
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Source: xStation5
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