Fed Inflation Warning: Rate Hike on the Table if Needed

The Fed's inflation warning and keeping the possibility of a rate hike on the table could reduce risk appetite in the markets and create selling pressure in the short term. In technical indicators, the RSI at 61 suggests that the overbought zone is approaching, while the MACD being positive and above the signal line indicates that momentum continues. However, the news flow could interrupt the current uptrend and increase the likelihood of a pullback towards the SMA20 and SMA50 levels. Therefore, the short-term direction may be downward, but it may be premature to expect a strong decline.

The Fed's leaving the door open for further rate hikes could reduce risk appetite in the markets and create short-term pressure on the NDX. Technically, the RSI is at 57, in neutral territory, while the MACD is positive but momentum may weaken. Although the price is above the SMA20 and SMA50, the news flow could lead to a test of this support. Investors are advised to remain cautious and be prepared for a potential pullback.

The news headline emphasizes that the Fed is open to raising interest rates against inflation risks, which stands out as a supportive factor for the dollar. In technical indicators, the RSI is at 45, in neutral territory, while the MACD is above the signal line, indicating slight positive momentum. The price is holding just above the SMA20 and below the SMA50, but shows potential for a short-term recovery. Despite the decline over the last 24 hours, the news flow and technical structure support a limited upward bias over a 1-3 day perspective. However, as there is no strong trend signal, the confidence level is kept moderate.