On the daily chart below, we can see that recently the price broke out of the key 12284 resistance but failed to keep up with the momentum as last Fri
On the daily chart below, we can
see that recently the price broke out of the key 12284 resistance but failed to keep up with the
momentum as last Friday the University
of Michigan report missed expectations across the board and the
long-term inflation expectations surprised with a big jump.
Fed Chair Powell once mentioned
that they consider those expectations, so the market reacted accordingly. The
price fell back below the resistance and it’s now retesting the top of the
previous range. Will we see a bounce and a rally afterwards or there’s more downside
to come?
On the 4 hour chart below, we can
see that the buyers leant on the red long period moving
average and the top of the previous range. This week is bare on the data front with
just Retail Sales scheduled for tomorrow and Fed Chair Powell speech on Friday.
We are likely to see the buyers coming in more strongly if the data is benign
and Powell doesn’t sound too hawkish, so watch out for those events.
On the 1 hour chart below, we can
see more closely the price action on last Friday. The selloff was caused by the
UMich report but late in the evening buyers showed up and bid up the price. The
levels to watch are the recent high at 12364 and the low at 12212. The buyers
are likely to pile in case the market breaks above the high, while the sellers
should jump onboard in case the price breaks below the low.
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