Fed Chair Warsh: No Tolerance for Inflation, Price Stability is Priority

Fed Chairman Warsh's hawkish tone could trigger a short-term recovery in the DXY. With the RSI14 at 25.6 in oversold territory, the potential for a technical correction increases. However, the price remaining below the 20- and 50-day moving averages suggests that upside movement may be limited. The MACD being below the signal line also indicates weak short-term momentum. Therefore, the expectation of a rise should be assessed with moderate confidence.

Fed Chairman Warsh's statement that he will not tolerate inflation and prioritizes price stability is perceived as a hawkish stance by the market. These remarks could weaken interest rate cut expectations, negatively impacting risk appetite in the short term. Technically, the SPX is trading below its 20-day moving average (7544), with the RSI at 46.6, hovering near the lower end of the neutral zone. The MACD line remaining below the signal line confirms weak momentum. Therefore, the index is likely to face downward pressure in the near term.

Fed Chairman Warsh's statement that he will not tolerate inflation and prioritizes price stability may be perceived as a hawkish stance by the market. This could weaken expectations for interest rate cuts, putting pressure on the tech-heavy NDX index. Technically, the RSI at 45.7, below the neutral zone, and the MACD trading negatively below its signal line indicate short-term weakness. The price remaining below the 20-day SMA (29599) supports the bearish trend. However, with the price hovering near the 50-day SMA (29459), a break below this level could accelerate selling pressure.