The QQQ ETF's price has exhibited prolonged overbought conditions

Denis Joeli Fatiaki Independent Analyst

The QQQ ETF's price has exhibited prolonged overbought conditions, as indicated by the Relative Strength Index (RSI), suggesting the potential for a pullback. On the daily chart, we observe two failed attempts by the price to surpass the 371 level, signifying a notable resistance zone.

The 371-374 supply zone on the daily chart holds crucial significance, as its breach would imply the continuation of the ongoing trend.

Conversely, if the price fails to break through this zone, it could trigger a retracement towards crucial support levels at 366, 361, and 357.

A decisive drop below 357 might signify the onset of a significant pullback, with the price potentially descending to around 330.

In the event of a breakout above the 371-374 zone, traders and investors should closely monitor resistance levels at 380 and 384. These levels can act as major barriers as it enters an extremely over-bought area in the RSI indicator, possibly leading to a significant pullback in the price. Traders and investors need to pay attention to these areas for any signs of a trend reversal or increased selling pressure.

Author

Denis Joeli Fatiaki

Independent Analyst

Denis Joeli Fatiaki possesses over a decade of extensive experience as a multi-asset trader and Market Strategist.

AUD/USD picks up bids above 0.7100 after RBA-speak

AUD/USD picks up bids above 0.7100 in the Asian session on Tuesday, following hawkish comments from RBA Assistant Governor Sarah Hunter and Governor Michele Bullock. However, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, which could limit the pair. The crucial Trump-Xi summit is later this week and remains in focus.

USD/JPY holds small gains near 157.50 as JPY intervention risks loom

USD/JPY posts modest gains while trading near 157.50 in the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. Meanwhile, the US Dollar retains a bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, providing tailwinds for the pair.

Gold struggles below $4,350 as hawkish Fed offsets sliding bond yields, softer USD

Gold attracts some sellers following a modest Asian session uptick, and slides below $4,350 in the last hour, though the downside seems limited. The US Federal Reserve's hawkish outlook is seen as a key factor undermining the non-yielding yellow metal.

Pepe signals trend reversal amid a short squeeze

Pepe (PEPE) price is up nearly 30% in the last 24 hours, outperforming most top cryptocurrencies and hinting at further upside potential. Derivatives data suggest a short squeeze of more than $2 million during the same period, forcing traders to buy back positions in the meme coin. The technical outlook for PEPE indicates an upside bias as bullish momentum strengthens.

WTI looks to reclaim $93.00 after defending 38.2% Fibo. support

West Texas Intermediate (WTI) attracts some buyers during the Asian session, snapping a four-day losing streak to sub-$91.00 levels, or a nearly two-week low touched the previous day. The commodity currently trades just below the $93.00 mark, up around 1.40% for the day, as the focus remains on the Middle East crisis.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.