Fundamental Overview
The Nasdaq has been keeping the bid since last week as the softer than expected US inflation data gave the market a boost.
We haven’t got any key economic report since then and no comment from Fed speakers given that they are in the blackout period.
The main driver of the price action this week has been Trump and his tariffs threats. We saw a quick dip on Tuesday as he talked about imposing 25% tariffs on Canada and Mexico next week, but the market eventually erased the losses.
Overall, it seems like the market is optimistic about tariffs and the news that
Trump is considering a 10% tariff on China might be a signal that he won’t be as aggressive as promised during his campaign given that back then he talked about 60% tariff on China.
Nasdaq Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq broke above the 21890
resistance yesterday although it fell back below it later on. The sellers will likely pile in around these levels with a defined risk above the resistance to position for a drop back into the lows. The buyers, on the other hand, will want to see the price breaking back above the resistance to position for a rally into a new all-time high.
Nasdaq Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have an upward
trendline defining the bullish momentum. The buyers will likely lean on the trendline to position for a rally into a new all-time high, while the sellers will look for a break lower to increase the bearish bets into new lows.
Nasdaq Technical Analysis – 1 hour Timeframe
On the 1 hour chart, there’s not much we can add here as the buyers will look for a bounce around the trendline, while the sellers will look for a break lower to target the 21400 level next. The red lines define the
average daily range for today.
Upcoming Catalysts
Today we get the latest US Jobless Claims figures, while tomorrow we conclude the week with the US Flash PMIs.
This article was written by Giuseppe Dellamotta at
www.forexlive.com.
