Nasdaq Technical Analysis – The path of least resistance remains to the upside | Forexlive

Fundamental
Overview

The Nasdaq is approaching
the all-time highs after a strong rally triggered by the benign US PPI and the
Trump’s reciprocal tariffs announcement.

In fact, despite a higher
than expected US PPI report, the details that feed into the Core
PCE index, which is what the Fed focuses on, were all very soft. That helped to
bring the early estimates down to more benign levels. The Core PCE Y/Y is now
projected to fall to 2.6% vs. 2.8% in the prior month. That’s good news for the
Fed.

The bullish momentum
increased eventually as the Trump’s tariffs saga came to an end. In fact, the
US President announced his reciprocal tariffs that could go into effect in April
but the overall tone of it wasn’t aggressive and sounded a lot like the start
of a negotiating process to bring tariffs to a fair level for everyone.

We don’t have much on the
agenda this week except the Flash US PMIs on Friday, but the path of least
resistance remains to the upside as long as the disinflationary process
continues without any growth scare.

Nasdaq
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that the Nasdaq broke above the key 22111 resistance with the buyers now targeting a new
all-time high. The sellers will likely step in around the all-time high level
to position for a pullback into the 21000 level, while the buyers will look for
a break higher to increase the bullish bets into new highs.

Nasdaq Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have an upward trendline defining the bullish momentum. If
the price were to pull back into it, we can expect the buyers to lean on the
trendline with a defined risk below it to position for a rally into a new
all-time high. The sellers, on the other hand, will want to see the price
breaking lower to increase the bearish bets into the 21000 level next.

Nasdaq Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see that from a risk management perspective, the buyers will have a better risk
to reward setup around the 22111 level. The sellers, on the other hand, will
look for a break lower to target a drop into the trendline. The red lines
define the average daily range for today.

Upcoming Catalysts

Today we have the FOMC Meeting Minutes.
Tomorrow, we get the latest US Jobless Claims figures, while on Friday we
conclude with the US Flash PMIs.