<p>On the daily chart below, we can
see that the price is again approaching the broken <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> that now may act as support for
the buyers. The last bounce stalled at the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 4061 where the sellers piled
in and then increased the selling pressure as <a target=“_blank“ href=“https://www.forexlive.com/news/ka-powell-20230308/“>Fed
Chair Powell</a> signalled a possible 50 bps hike and a higher
terminal rate. </p><p>Yesterday we got another selloff,
but it’s not yet clear why that happened, although many are attributing it to
problems with a regional <a target=“_blank“ href=“https://www.forexlive.com/news/why-is-the-market-in-a-full-fledged-flight-to-safety-mode-20230310/“>US
bank</a> that sparked fears of contagion. Anyway, all eyes will be on today’s <a target=“_blank“ href=“https://www.forexlive.com/news/preview-february-non-farm-payrolls-by-the-numbers-20230309/“>NFP
report</a>. </p><p>In the 4
hour chart below, we can see that after stalling at the resistance at 4061 and
the 50% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level, the market sold off pretty aggressively due
to Powell’s comments. The moving averages crossed to the downside and the
sellers leant on the red long period moving average to extend the selloff even
further into the NFP report. </p><p>We now
may get a pullback as some position may be squared ahead of the event. The
moving averages will act as resistance but the direction will most likely be
decided by the data. </p><p>In the 1 hour chart below, we can
see that yesterday the price rallied into the downward trendline as <a target=“_blank“ href=“https://www.forexlive.com/news/us-weekly-initial-jobless-claims-211k-vs-195k-expected-20230309/“>jobless
claims</a> missed expectations and then sold off as the stock market opened. It
could have been just positioning into a strong NFP report or the fear of
contagion due to the regional bank problems. </p><p>Hard to explain. The plan for the
traders seems clear today: if the data beats expectations, we should see the
sellers in control and push the price lower. On the other hand, if the data
misses expectations we may see a rally towards the 4061 resistance. </p>
see that the price is again approaching the broken <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> that now may act as support for
the buyers. The last bounce stalled at the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 4061 where the sellers piled
in and then increased the selling pressure as <a target=“_blank“ href=“https://www.forexlive.com/news/ka-powell-20230308/“>Fed
Chair Powell</a> signalled a possible 50 bps hike and a higher
terminal rate. </p><p>Yesterday we got another selloff,
but it’s not yet clear why that happened, although many are attributing it to
problems with a regional <a target=“_blank“ href=“https://www.forexlive.com/news/why-is-the-market-in-a-full-fledged-flight-to-safety-mode-20230310/“>US
bank</a> that sparked fears of contagion. Anyway, all eyes will be on today’s <a target=“_blank“ href=“https://www.forexlive.com/news/preview-february-non-farm-payrolls-by-the-numbers-20230309/“>NFP
report</a>. </p><p>In the 4
hour chart below, we can see that after stalling at the resistance at 4061 and
the 50% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level, the market sold off pretty aggressively due
to Powell’s comments. The moving averages crossed to the downside and the
sellers leant on the red long period moving average to extend the selloff even
further into the NFP report. </p><p>We now
may get a pullback as some position may be squared ahead of the event. The
moving averages will act as resistance but the direction will most likely be
decided by the data. </p><p>In the 1 hour chart below, we can
see that yesterday the price rallied into the downward trendline as <a target=“_blank“ href=“https://www.forexlive.com/news/us-weekly-initial-jobless-claims-211k-vs-195k-expected-20230309/“>jobless
claims</a> missed expectations and then sold off as the stock market opened. It
could have been just positioning into a strong NFP report or the fear of
contagion due to the regional bank problems. </p><p>Hard to explain. The plan for the
traders seems clear today: if the data beats expectations, we should see the
sellers in control and push the price lower. On the other hand, if the data
misses expectations we may see a rally towards the 4061 resistance. </p>
This article was written by ForexLive at www.forexlive.com.