Technology Rally Lifts Asian Stocks, Dollar Strengthens on Rate Hike Expectations

GOOGL rose 2.72% in the last 24 hours, closing at 355.22 and trading above its 20-day SMA (351.08). The RSI is at 63, not yet approaching overbought territory, while the MACD is positive above the signal line, indicating that short-term momentum remains bullish. News of a technology rally in Asian markets points to a positive risk appetite for GOOGL, but a strengthening dollar on rate hike expectations could be a limiting factor for tech stocks. Therefore, in the 1-3 day horizon, the upward trend may persist, but there is a risk that the movement could be limited due to dollar pressure and possible profit-taking. Nevertheless, the current technical structure and news combination support a slightly positive outlook.

The HSI has risen 2.77% in the last 24 hours to reach 25,146, with a technology rally supporting Asian stock markets. Although the RSI at 66.4 is approaching overbought territory, no confirmed reversal signal has yet emerged. The MACD is above its signal line and positive, supporting short-term momentum. The price is above the SMA20 and SMA50, indicating an upward trend. However, the strengthening dollar on rate hike expectations could limit risk appetite; therefore, while the upward trend remains intact, caution is advisable.

The technology rally in Asian stock markets is enhancing global risk appetite, creating a positive short-term environment for emerging markets. However, the strengthening of the dollar amid expectations of interest rate hikes could put pressure on the Turkish lira and other emerging market currencies. This situation may lead to sectoral divergence for the BIST 100, benefiting exporters while adversely affecting importers. Overall, the increase in global risk appetite is positive in the short term, but the strengthening dollar stands out as a limiting factor.

The news indicates that the dollar strengthened on expectations of an interest rate hike; this is a slightly positive signal for DXY. However, technical indicators are mixed: RSI at 47.8 is neutral, MACD is below the signal line, and the price is squeezed between SMA20 and SMA50. The last close was 100.347, just below SMA20 (100.373) and very close to SMA50 (100.337), increasing the likelihood of a sideways trend. Although the rate hike expectation supports the dollar in the short term, the technical outlook does not provide a clear direction. Therefore, I expect a mild upward trend for 1-3 days, but confidence is low.