Lavorgna: I Don't Expect the Fed to Raise Rates in July

The news could weaken the dollar by reducing expectations of a Fed rate hike. The RSI at 38.9 is near oversold territory, supporting a short-term bearish trend. The MACD is below the signal line and negative, indicating weak momentum. The price is below both the SMA20 and SMA50, presenting a technically bearish outlook. However, I believe the decline may be limited as the RSI approaches oversold territory.

The news indicates that the Fed is not expected to raise interest rates, which is generally a positive signal for the market. However, the NDX has declined by 1.5% in the last 24 hours, and the RSI at 54 remains in neutral territory, making it difficult to determine a clear short-term direction. Although the MACD is still in negative territory, it is approaching the signal line, which could indicate weakening momentum. The price remains above the 20-day and 50-day moving averages, providing medium-term support. Nevertheless, due to the downward trend and uncertainty, a sideways movement is expected in the short term.

The news provides a positive signal for the market by indicating that the Fed is not expected to raise interest rates. Technical indicators also support this view: the RSI at 67.5 is approaching overbought territory but is not yet at a dangerous level, the MACD is above the signal line, and upward momentum continues. The price is trading above the 20- and 50-day moving averages, and the short-term trend appears strong. However, the elevated RSI increases the risk of a short-term correction, so the bullish outlook should be tempered with cautious optimism.