On the daily chart below for the Nasdaq,
we can see that we have finally got a breakout. This 12274 level has been a
really tough nut to crack, but the buyers eventually succeeded. We can see how
they’ve been knocking on that door for over a month and as soon as the price
started to run to the upside, sellers folded quickly.

The risk sentiment was also
helped by the recent positive
news on the debt ceiling front which points to a classic “buy the rumour”
type of trade. Right now, the buyers don’t have much resistance on the upside except the clear
swing high at 13174. We may even see the rally extending towards that high with
little to no pullbacks as the FOMO kicks in.

Nasdaq
technical analysis

On the 4 hour chart below, we can
see more closely the breakout of the range just beneath the 12274 resistance.
The big bullish
flag pattern is still working and as previously mentioned, the target should
be right around the 13000 high. The sellers may have a hard time now timing a
top as there aren’t strong levels to lean on as before. Nonetheless, watch out
for Fed Chair Powell today as he may lean more explicitly
towards a June rate hike justified by the recent better than expected economic
data.

On the 1 hour chart below, we can
see that we have just a minor resistance from the August 2022 swing high. This
level may see some profit taking and lead to a pullback. The buyers should be
waiting for another rally at the nearest trendline though, while the sellers will
want to see the price to break below it to get some more confidence on further
downside. What looks clear is that the bias should remain bullish as long as
the price stays above the 12274 resistance.

This article was written by ForexLive at www.forexlive.com.

• ECB will be courageous to take needed decisions to bring inflation back to 2%

Just some token remarks and not really giving much away for now. Another rate hike is well expected for June but we will see if there will be any more after for the ECB. A lot of that is going to come down to the data.

This article was written by Justin Low at www.forexlive.com.

The dollar jump yesterday was certainly noteworthy but we are seeing a light pullback to the gains in trading today. Of note, USD/JPY is down 0.4% to 138.10 levels but buyers are still looking poised in the bigger picture.

Meanwhile, the antipodeans are also taking advantage amid the more positive risk mood. AUD/USD and NZD/USD are both up 0.5% to 0.6650 and 0.6260 respectively with the former holding a decent bounce off 0.6600 at the lows yesterday.

Despite the bit-part retracement so far today, the dollar continues to sit in a good spot from a technical perspective. That is rather evident against the euro and yen, so let’s take a look.

EUR/USD is marginally higher today near 1.0780 but the important detail on the chart remains that break below 1.0800 and the 100-day moving average (red line). That is keeping dollar bulls interested and poised to maintain a downside push in the pair so long as the levels above hold.

As for downside targets, there is room to roam perhaps back towards the March lows at 1.0516-36 and potentially 1.0500. However, there will definitely be a lot of twists and turns in the week(s) ahead so don’t expect any moves to be that straightforward.

Then, we have USD/JPY which rose to its highest levels since the end of November last year on a break above 138.00 yesterday. That is still very much holding with the broken resistance region at 137.77-91 one to watch if sellers are to wrestle back some momentum towards the end of the week.

Otherwise, buyers are looking poised to keep a push towards 140.00 next for the pair so long as the bond market plays ball.

But the pullback today is also seeing yields drop slightly with 2-year Treasury yields down 5 bps to 4.22% and 10-year yields down 2.5 bps to 3.62% on the day.

This article was written by Justin Low at www.forexlive.com.