Despite the strength in the US data this week and
another beat in Jobless Claims
yesterday, the Nasdaq Composite didn’t sell off like we saw in the past week.
The index is hovering around a key support level and it looks like the soft
landing vibes might be returning now that the hangover from the more hawkish
than expected FOMC dot plot might be in the rear view mirror.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite continues to consolidate around the key support at
13174. It’s all bout having the patience to wait for a clear breakout with the
target on the upside standing at the downward trendline around
the 13800 level and on the downside at the 12274 support.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the recent
rally got rejected from the red 21 moving average and the
38.2% Fibonacci retracement level. The
lack of a follow through from the rejection, and the consolidation around the
support level might be a signal that the Nasdaq Composite could be about to
start a correction to the upside.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely that we have a clear range between the low around the 12965 level and
the resistance at the 38.2% Fibonacci retracement level. In such instances, the
best strategy may be to wait for a clear breakout and go with the flow, but one
can also “play the range” by selling at resistance and buying at support.

Upcoming
Events

Today it’s all about the NFP report which is the only one the Fed will
see before its next rate decision. The US jobs data going into the NFP was
strong, so the expectations might be skewed to the upside.

This article was written by FL Contributors at www.forexlive.com.