Nasdaq Technical Analysis – Easing inflation fears boost the market

Fundamental
Overview

The Nasdaq has been
rallying steadily this week thanks to positive news both on the tariffs and
inflation front. On Monday, we got a news from Bloomberg that the Trump’s team was
studying gradual tariffs hikes.

On Tuesday, we got a very
soft US PPI report and yesterday lower than expected US Core CPI data. The market pricing edged
higher from 24 bps of easing by year end to 36 bps following the US CPI report.

This week might have marked
the top in inflation hysteria and the repricing in rate cuts expectations,
which should support the market going forward as long as growth doesn’t start
to weaken too much.

Nasdaq
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that the Nasdaq briefly probed below the key 21000 support but eventually rallied back strongly thanks to
a few positive catalysts.

The buyers are now targeting the most recent lower
high around the 21900 level to change the trend with a break above it. The
sellers, on the other hand, will likely step in around the 21900 level with a
defined risk above it to position for a drop back into the support.

Nasdaq Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have a downward trendline defining the bearish momentum on
this timeframe. The sellers are stepping in around these levels with a defined
risk above the trendline to position for a drop back into the support. The
buyers, on the other hand, will want to see the price breaking higher to
increase the bullish bets into new highs.

Nasdaq Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see that we have a couple of key levels here. We have the minor upward
trendline defining the current buildup into the major trendline. The buyers
will likely lean on the minor trendline to position for a break above the major
trendline. The sellers, on the other hand, will look for a break lower to
increase the bearish bets into the 21160 level next. The red lines define the average daily range for today.

Upcoming Catalysts

Today we get the latest US Jobless Claims figures and the US Retail Sales
data.

This article was written by Giuseppe Dellamotta at www.forexlive.com.