EURUSD, Nasdaq Forecast: Are Markets Ready to Reverse?
Written by Razan Hilal, CMT, Market Analyst
As we dive into the market landscape, recent indicators are showing warnings that hark back to the tumultuous times of 2008. Is the once-indomitable “buy the dip” mentality losing its foothold? With Trump’s recent tariff strategies playing a pivotal role, we might be witnessing the dawn of a new market era—one that will challenge traditional bullish convictions across major asset classes.
Key Volatility Risks This Week:
- Trade war developments – escalation or resolution
- Chinese and U.S. CPI figures – Thursday
- U.S. Consumer Sentiment data – Friday
- Q1 Bank earnings – Friday: JPMorgan, Wells Fargo, Morgan Stanley, and BlackRock
In this report, we’ll closely examine the charts for both EURUSD and the Nasdaq, focusing on their significant resistance and support levels. What do they tell us about the immediate future of these markets?
Technical Analysis: Quantifying Uncertainties
EURUSD Monthly Time Frame – Log Scale
The EURUSD is currently testing the upper boundary of a long-term descending parallel channel, dating back to the highs of 2008. This level aligns closely with key resistance near the 1.12 mark. A breakout above 1.1270 may indicate a pivotal shift toward a bullish reversal, with targets set at 1.15, 1.17, and 1.19. Conversely, failure to maintain this momentum could see a retreat towards the support levels at 1.07 and 1.05.
EURUSD 3-Day Time Frame – Log Scale
Looking at the 3-day timeframe, the pair remains within a descending price channel that has been established since mid-2023. Key support levels are around 1.0820 and 1.0780; a break below these levels could trigger significant downward movement towards 1.0730, 1.0670, and even 1.0570. If these supports hold, the focus will shift back to the critical resistance area between 1.1150 and 1.1270.
Nasdaq Weekly Time Frame – Log Scale
The Nasdaq recently bounced off the 50% Fibonacci level from its uptrend, but sentiment is fragile. If the 16,300 support level fails, we could see declines toward the 15,000–14,900 Fibonacci retracement zone. On the flip side, if the index can hold its ground and the RSI shows improvement, bullish targets of 17,700, 19,100, and possibly 20,000 could be back in play.
Summary
As we stand at a critical juncture, monitoring these key levels in EURUSD and the Nasdaq will be essential in navigating the next market moves. Can volatility be turned into opportunity? Stay tuned as we keep you updated.
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Related tags: Stock Market, Nasdaq, Forex, EUR/USD, CPI