Fed Minutes: Rate Hike on the Table if Inflation Doesn't Fall

The hawkish tone of the Fed minutes could dampen risk appetite in the short term and create selling pressure on the index. Technical indicators also support this view; the RSI is in the weak zone at 39, and the price is below both the 20-day and 50-day moving averages. The MACD is in negative territory and below the signal line, confirming downward momentum. However, the limited decline in the latest close and the fact that oversold conditions have not yet been reached suggest that the decline could be controlled. Therefore, while the direction is downward, I anticipate a limited pullback rather than a strong sell-off.

The Fed's signal of a rate hike could dampen risk appetite, potentially creating selling pressure on the NDX. Technical indicators are already weak: RSI at 32 is near oversold territory, MACD is negative, and the price is below both the 20-day and 50-day moving averages. In the short term, the downtrend may persist, but oversold conditions could trigger a rebound. The news reinforces the current weak momentum, pointing to further declines within 1-3 days.

The DXY is in oversold territory with an RSI of 20.28 and has declined 0.78% in 24 hours, suggesting that selling pressure may continue in the short term. The price is trading below the SMA20 and SMA50, and the MACD is in negative territory, indicating weak momentum. The Fed's signal of interest rate hikes could support the dollar in the short term, but the current technical outlook highlights downward pressure. Oversold conditions could lead to a corrective bounce, but with the trend down, a continuation of the decline is more likely. Therefore, the short-term direction is down, but with a medium level of confidence.