Mid-Week Technical Outlook: NQ100_m waits on Fed rate decision

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
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<li>NQ100_m hits fresh 2023 high yesterday</li>
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<li>Index could be rocked by looming Fed decision</li>
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<li>Bulls in control but RSI overbought on D1 chart</li>
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<li>Levels of interest at 16770.6, 16100 &amp; 15800</li>
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<h3>The NQ100_m jumped to a fresh 2023 high in the previous session after signs of slowing inflation supported hopes around the Fed cutting interest rates next year.</h3>
<p>November’s inflation report painted a mixed picture with annual consumer prices <strong>slipping to 3.1%, down from 3.2% in October.</strong> The annual core figure, which strips out volatile energy and food prices rose <strong>by 4% in line with the prior month.</strong> However, the monthly core figure <strong>rose 0.3%, slightly faster than 0.2% in the previous month.</strong></p>
<blockquote><p><strong>While traders are still pricing in a 25-basis point cut by May 2024, this could be influenced by the Fed decision later today.</strong></p></blockquote>
<p><a href="https://www.forextime.com/market-analysis/week-ahead-us-dollar-set-explosive-week">As highlighted in our week ahead report</a>, the central bank is widely expected to leave rates unchanged, so focus will be on the updated economic projections, “dot plot” and Powell’s press conference.</p>
<p>Whatever the outcome of the Fed meeting, it could rock the NQ100_m which is filled with <strong>tech stocks that remain sensitive to interest rates.</strong></p>
<h3><strong>Redirecting our attention back to the technicals…</strong></h3>
<p>The NQ100_m is respecting a bullish channel on the weekly charts with the next key level at the all-time high of 16770.6 created back in November 2021.</p>
<p><img fetchpriority="high" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/NQ100_mWeekly_1.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="514c3e90-7c38-47a9-9a08-940e9a3389f7" data-src="/s3-static/users/user17/NQ100_mWeekly_1.png" /></p>
<p>It is a similar story on the daily charts with bulls clearly in a position of power. There have been consistently higher highs and higher lows while prices are trading well above the 50, 100, and 200-day SMA. However, the Relative Strength Index (RSI) is trading above 70, signalling that prices are heavily overbought, suggesting a potential throwback down the road.</p>
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<h3>Should 16100 prove to be reliable support, this may provide a foundation for bulls to charge towards 16770.6</h3>
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<h3>A move back below 16100 could trigger a selloff towards 15800 and 15540.</h3>
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<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/NQ100_mDaily_17.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="bd0ac7bc-cc62-49b2-b148-51799c9662ad" data-src="/s3-static/users/user17/NQ100_mDaily_17.png" /></p>
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