<p>On the daily chart below, we can
see that the range between the 33538 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> and the 34477 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> got finally broken and led to a
selloff to the 32684 key support level. The current bias is bearish as economic
data in February beat expectations and led the market to price in a higher
terminal rate and no cuts by the end of this year. </p><p>The soft landing narrative
supported the stock market from October 2022 onwards but recently got hit as it
looks more likely that we will need some pain in the labour market to get
inflation back to the Fed’s target. </p><p>On the 4 hour chart below, we can
see that the bearish trend is supported by the downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a>. The hot <a target=“_blank“ href=“https://www.forexlive.com/news/us-january-pce-core-inflation-47-vs-43-expected-20230224/“>US
PCE</a> report
on Friday led to a selloff to the 32684 support and right now we are seeing a
pullback probably towards the trendline. That will be a good spot for the
sellers to start piling in again barring any notable misses in economic data <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>this week</a>. </p><p>In the 1 hour chart below, we can
see that the best spot for the sellers will be the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> between the trendline and the
61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level near the 33000 level. That’s also where a
previous swing level offered support for the buyers. We can see that the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>divergence</a> between the price and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> into the 32684 support was a
signal for the sellers that the momentum was weakening and a pullback was
likely. </p>
see that the range between the 33538 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> and the 34477 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> got finally broken and led to a
selloff to the 32684 key support level. The current bias is bearish as economic
data in February beat expectations and led the market to price in a higher
terminal rate and no cuts by the end of this year. </p><p>The soft landing narrative
supported the stock market from October 2022 onwards but recently got hit as it
looks more likely that we will need some pain in the labour market to get
inflation back to the Fed’s target. </p><p>On the 4 hour chart below, we can
see that the bearish trend is supported by the downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a>. The hot <a target=“_blank“ href=“https://www.forexlive.com/news/us-january-pce-core-inflation-47-vs-43-expected-20230224/“>US
PCE</a> report
on Friday led to a selloff to the 32684 support and right now we are seeing a
pullback probably towards the trendline. That will be a good spot for the
sellers to start piling in again barring any notable misses in economic data <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>this week</a>. </p><p>In the 1 hour chart below, we can
see that the best spot for the sellers will be the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> between the trendline and the
61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level near the 33000 level. That’s also where a
previous swing level offered support for the buyers. We can see that the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>divergence</a> between the price and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> into the 32684 support was a
signal for the sellers that the momentum was weakening and a pullback was
likely. </p>
This article was written by ForexLive at www.forexlive.com.
