Fed's Hawkish Stance Strengthens: Employment Data Dashes Rate Cut Hopes

The DXY is trading in overbought territory with an RSI above 80, which is typically interpreted as a short-term correction signal. Although the hawkish Fed stance and diminishing rate cut expectations in the news headline support the DXY, technically overbought levels could increase selling pressure. While the MACD remains in positive territory, the overbought RSI raises the likelihood of a short-term pullback. Therefore, upside movement is expected to remain limited in the near term, with a correction likely. However, it should be noted that the decline may be limited due to strong news flow.

The news headline indicates that the Federal Reserve has turned hawkish, reducing expectations for interest rate cuts. This is a negative factor for equity markets. Technical indicators are in oversold territory (RSI at 16.97), and the MACD is negative, suggesting the downtrend may continue. The price is trading below the 20-day and 50-day moving averages. Selling pressure is expected to persist in the short term, though some buying on the dip may occur due to oversold conditions.

Although NDX has entered oversold territory with its RSI dropping to 15, the strengthening of the Fed's hawkish stance and diminishing expectations for interest rate cuts continue to weigh on technology stocks. The MACD remaining below its signal line and in negative territory indicates sustained bearish momentum. The price trading below its 20-day and 50-day moving averages keeps the short-term outlook weak. However, oversold conditions may trigger a technical rebound, so while the bearish expectation is high, the possibility of a limited correction should not be ruled out.

The news headline indicates that the Fed's hawkish stance has strengthened and expectations for interest rate cuts have diminished. This could put pressure on emerging market currencies and support an upward move in USDTRY. However, technical indicators are giving mixed signals: RSI is at 46 in neutral territory, MACD is below the signal line, and the price is below the SMA20. Therefore, limited downside or sideways movement can be expected in the short term. Nevertheless, the likelihood of a decline is more pronounced given the impact of the news.