<p class=“MsoNormal“>On the daily chart below, we can
see that the market got stuck in a range as soon as it bounced from the 1731 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a>. The uncertainty is high. On one
hand the market is more optimistic as the banking crisis is fading, on the
other hand, it is pessimistic that the recent events will cause a bigger
slowdown in the economy than expected. </p><p class=“MsoNormal“>After bouncing yet again from the
support, the price is now approaching the top of the range where there is also
the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level and the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a>. It’s very likely that the sellers will lean on this level with defined
risk and target again the support. </p><p class=“MsoNormal“>On the 4
hour chart below, we can see more closely the range between the 1731 support
and the 1800 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a>. The buyers will need to break
above the resistance supported by a fundamental catalyst to confirm the
breakout and start a rally towards the 1900 level. The sellers will most likely
use the resistance to pile in again and target a break below the 1731 support. </p><p class=“MsoNormal“>On the 1 hour chart, we can see
that the market is trading in a channel and that is <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> right when it approaches the
resistance. This is a signal of a loss of the buying momentum and it’s another
good signal for the sellers. A possible catalyst may be today’s <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>US Jobless Claims</a> report where a beat should make
the market to price out some of the extreme dovishness in rates and send the
Russell 2000 lower, and a miss (although it should be bearish too) may give the
breakout the buyers are looking for as the market will look at rate cuts
earlier than expected. </p>
see that the market got stuck in a range as soon as it bounced from the 1731 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a>. The uncertainty is high. On one
hand the market is more optimistic as the banking crisis is fading, on the
other hand, it is pessimistic that the recent events will cause a bigger
slowdown in the economy than expected. </p><p class=“MsoNormal“>After bouncing yet again from the
support, the price is now approaching the top of the range where there is also
the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level and the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a>. It’s very likely that the sellers will lean on this level with defined
risk and target again the support. </p><p class=“MsoNormal“>On the 4
hour chart below, we can see more closely the range between the 1731 support
and the 1800 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a>. The buyers will need to break
above the resistance supported by a fundamental catalyst to confirm the
breakout and start a rally towards the 1900 level. The sellers will most likely
use the resistance to pile in again and target a break below the 1731 support. </p><p class=“MsoNormal“>On the 1 hour chart, we can see
that the market is trading in a channel and that is <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> right when it approaches the
resistance. This is a signal of a loss of the buying momentum and it’s another
good signal for the sellers. A possible catalyst may be today’s <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>US Jobless Claims</a> report where a beat should make
the market to price out some of the extreme dovishness in rates and send the
Russell 2000 lower, and a miss (although it should be bearish too) may give the
breakout the buyers are looking for as the market will look at rate cuts
earlier than expected. </p>
This article was written by ForexLive at www.forexlive.com.