<p>On the daily chart below, we can
see that the buyers couldn’t break the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 4175 as the blockbuster <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP
report</a> changed the market expectations of future interest rates. </p><p>The minor upward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> that was acting as <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> for the rally was breached as <a target=“_blank“ href=“https://www.forexlive.com/centralbank/bullard-at-this-point-sees-policy-rate-in-the-range-of-525-550-as-appropriate-20230216/“>Fed’s
Bullard</a> mentioned that he would be open for a 50 bps hike at the March meeting
and that he sees a higher terminal rate as more appropriate. </p><p>The market will be looking at <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>incoming economic data</a>, especially the next NFP and CPI
reports to decide where to go next. We are in a “good news is bad news”
environment now for the stock market so watch out for more selloffs in case of
hot data. </p><p>In the 4
hour chart below, we can see that the market is founding some short term bottom
as depicted by the multiple wicks around the 4000 level. We may see a pullback
towards the 4060 level where we can also find the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. </p><p>That’s
going to be a strong level where we should see sellers piling in. With a break
higher though, we may see the buyers extend the rally towards the broken
trendline and the 61.8% Fibonacci retracement level around 4110-4120. </p><p>In the 1 hour chart below, we can
see that the price broke out of the downward trendline. This may be a signal of
a change in momentum as we can also see from the hourly <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> crossing to the upside. </p><p>Once the buyers manage to break
the 4025 level we should see the pullback towards the previously mentioned 4060
resistance. In case this is just a fakeout, sellers will start to pile in again
on the break of the low at 3984. </p>
see that the buyers couldn’t break the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 4175 as the blockbuster <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP
report</a> changed the market expectations of future interest rates. </p><p>The minor upward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> that was acting as <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> for the rally was breached as <a target=“_blank“ href=“https://www.forexlive.com/centralbank/bullard-at-this-point-sees-policy-rate-in-the-range-of-525-550-as-appropriate-20230216/“>Fed’s
Bullard</a> mentioned that he would be open for a 50 bps hike at the March meeting
and that he sees a higher terminal rate as more appropriate. </p><p>The market will be looking at <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>incoming economic data</a>, especially the next NFP and CPI
reports to decide where to go next. We are in a “good news is bad news”
environment now for the stock market so watch out for more selloffs in case of
hot data. </p><p>In the 4
hour chart below, we can see that the market is founding some short term bottom
as depicted by the multiple wicks around the 4000 level. We may see a pullback
towards the 4060 level where we can also find the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. </p><p>That’s
going to be a strong level where we should see sellers piling in. With a break
higher though, we may see the buyers extend the rally towards the broken
trendline and the 61.8% Fibonacci retracement level around 4110-4120. </p><p>In the 1 hour chart below, we can
see that the price broke out of the downward trendline. This may be a signal of
a change in momentum as we can also see from the hourly <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> crossing to the upside. </p><p>Once the buyers manage to break
the 4025 level we should see the pullback towards the previously mentioned 4060
resistance. In case this is just a fakeout, sellers will start to pile in again
on the break of the low at 3984. </p>
This article was written by ForexLive at www.forexlive.com.