Nasdaq Composite Technical Analysis

<p>There is a recurring
sentiment among many Federal Reserve members that they are awaiting further
data before determining the extent of tightening measures. While the majority
of them anticipates two additional rate hikes this year, they consistently
emphasize that these decisions depend on the data. Yesterday, <a href="https://www.forexlive.com/centralbank/powell-we-believe-there-is-more-restrictive-policy-coming-20230628/">Fed Chair Powell</a> highlighted the resilience of the
economy and expressed openness to the possibility of two consecutive rate hikes
should the labour market's strength persist.</p><p>The data received after the
last FOMC meeting serves to reinforce the notion that we are likely to see
further rate hikes. The <a href="https://www.forexlive.com/news/us-may-housing-starts-1631m-vs-1400m-expected-20230620/">housing market</a> data surpassed expectations, the US
<a href="https://www.forexlive.com/news/initial-jobless-claims-264k-versus-260k-estimate-20230622/">Jobless Claims</a> remain steady, the <a href="https://www.forexlive.com/news/us-june-flash-sp-global-services-pmi-541-vs-540-expected-20230623/">US Services PMI</a> continues to expand, and the latest
<a href="https://www.forexlive.com/news/us-june-consumer-confidence-1097-vs-1040-expected-20230627/">Consumer Confidence</a> report showed notable strength.
Naturally, the upcoming NFP and CPI reports will have a pivotal role, however,
if we continue to see such positive data, it is highly likely that the Fed will
increase rates twice instead of the market's current expectation of a single
rate hike in July.</p><p>Nasdaq Composite Technical
Analysis – Daily Timeframe</p><p>On the daily chart, we can see that the price has
bounced on the red 21 <a href="https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/">moving average</a> and
extended to the 13651 level. From a risk management perspective, the buyers
would be better off buying from the 13174 support where we
can also find the 38.2% <a href="https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/">Fibonacci retracement</a> level.
If we see an extension lower, the last line of defence will be the upward <a href="https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/">trendline</a>. The
sellers, on the other hand, are likely to pile in at every break lower. </p><p>Nasdaq Composite Technical
Analysis – 4 hour Timeframe</p><p>On the 4 hour chart, we can see that the moving averages
have crossed to the downside. We haven’t seen such a development since the
beginning of May, so it clearly shows that the bearish momentum is prevailing
or the bullish one is waning. In any case, we can expect the sellers to lean on
the red 21 moving average and target the 13174 support, while the buyers will
need to break decisively to the upside to invalidate the bearish setup. </p><p>Nasdaq Composite Technical
Analysis – 1 hour Timeframe</p><p>On the 1 hour chart, we can see that we
have a strong short term resistance zone at the 13630 level where we can also
find the 50% Fibonacci retracement level. This is where the sellers should pile
in with a defined risk above the resistance and target the support. The buyers,
on the other hand, will want to see the price breaking higher to jump onboard
and target a new high.</p><p>Upcoming <a href="https://www.forexlive.com/EconomicCalendar">risk events</a> include today's US Jobless Claims and
tomorrow's US PCE report. The market has consistently responded favourably to
positive labour market data and low inflation reports, so we can expect a
similar reaction if we get such results. Conversely, if the data labour market
data weakens, it could potentially trigger concerns about a recession and lead
to a decline.</p>

This article was written by FL Contributors at www.forexlive.com.