Nasdaq Composite Technical Analysis | Forexlive

Last week, the FOMC made the
decision to temporarily halt its tightening cycle, setting it at 5.00-5.25%.
The rationale behind this move was their intention to gather more economic data
before proceeding with additional interest rate hikes. Their aim is to
carefully adjust the appropriate level of monetary restraint required to bring
inflation down to the desired 2% target, while minimizing any adverse impact on
the overall economy. Following the FOMC decision, the Nasdaq Composite
experienced a surge in value the following day but pulled back slightly just
before the extended Juneteenth weekend.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite has extended its rally much above the resistance at
13174. This breakout opened the door for a move all the way up to the 14649
resistance and, if the disinflationary trend continues without too much pain in
the labour market, we are likely to see that happening.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the moving averages keep
providing a dynamic support for the buyers. For the sellers it’s a really hard
environment as there’s no clear resistance level to lean onto. In fact, they
can only wait for some break of technical levels to pile in.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the short-term price action. A break below the swing low level at 13660
should see some sellers starting to pile in targeting a bigger pullback into
the 13174 support where we can also find the 50% Fibonacci
retracement level. That’s where the buyers will look
to enter again the market, all else being equal, and target the 14649
resistance.

The economic calendar for this week is relatively bare on the data front, although
we will hear from many Federal Reserve officials, including Fed Chair Powell,
who will testify before Congress on both Wednesday and Thursday. On Thursday,
we will see another US Jobless Claims report, while on Friday we will end the
week with the US PMIs.