<p>On the daily chart below, we can
see that the price has finally broken out of the range between the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at 33540 and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 34477. The market is
repricing a higher terminal rate and what may come next is a recession. </p><p>This is bad for the stock market
as we can see from the bearish price action. Once the support at 32684 gives
way, the sellers will have plenty of room to the downside. That level will also
be the last line of defence for the buyers.</p><p>On the 4 hour chart below, we can
see the recent breakout of the range and the price bouncing from the previous
low at 33030. We may see a pullback towards the broken support at 33538 that
now may turn into a resistance. There will be also the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> acting as resistance. If the buyers manage to get into the range again,
then we may see another run towards the 34477 resistance. </p><p>In the 1 hour chart below, we can
see that the resistance at 33538 has also the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. The downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> should act as the first
resistance for the sellers and the 38.2% Fibonacci level may be the spot where
we will see them piling in. </p><p>The 33538 resistance will be the
last line of defence for the sellers, while a break below the recent low at
33030 should give another flush towards the 32684 level. </p>
see that the price has finally broken out of the range between the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at 33540 and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 34477. The market is
repricing a higher terminal rate and what may come next is a recession. </p><p>This is bad for the stock market
as we can see from the bearish price action. Once the support at 32684 gives
way, the sellers will have plenty of room to the downside. That level will also
be the last line of defence for the buyers.</p><p>On the 4 hour chart below, we can
see the recent breakout of the range and the price bouncing from the previous
low at 33030. We may see a pullback towards the broken support at 33538 that
now may turn into a resistance. There will be also the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> acting as resistance. If the buyers manage to get into the range again,
then we may see another run towards the 34477 resistance. </p><p>In the 1 hour chart below, we can
see that the resistance at 33538 has also the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. The downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> should act as the first
resistance for the sellers and the 38.2% Fibonacci level may be the spot where
we will see them piling in. </p><p>The 33538 resistance will be the
last line of defence for the sellers, while a break below the recent low at
33030 should give another flush towards the 32684 level. </p>
This article was written by ForexLive at www.forexlive.com.