Take a look at this region of interest holding strong on an hourly basis!
It perfectly aligns with the 100 SMA dynamic inflection point as well as a short-term rising trend line that has been stable since the beginning of the year.
What are the results of the technical indicators?
The 200 SMA is comfortably above the 100 SMA, indicating that the upward movement is the direction of least resistance. In other words, there is a good possibility that the rally will continue.
Just be careful since moving down might cause a rapid decline since Stochastic is already sinking into the overbought level to indicate buyer tiredness.
Also keep in mind that Uncle Sam has the CPI data scheduled for today, which might cause significant volatility in U.S. markets once more.
Do you recall how the unexpectedly good January NFP sparked a swift dollar surge that lasted up to the trading week after that?
The headline CPI is predicted to rebound by 0.5%, while the core version of the data may show a slightly stronger 0.4% growth than the prior 0.3% increase.
The CPI estimate for the year-over-year comparison is anticipated to have decreased from 6.5% to 6.2% in January, which may nonetheless raise questions about the Fed's aggressive stance. Risky investments like shares may profit if it were the case and increase their gains!
