Nasdaq 100 consolidates while WTI rise and EUR/USD holds at support
Nasdaq 100 consolidates while WTI rise and EUR/USD holds at support as markets weigh the implications of President Trump's expanding tariff agenda, which now includes a proposed 50% duty on copper and forthcoming levies on semiconductors and pharmaceuticals.
Nasdaq 100 trades below record high
The Nasdaq 100 continues to trade close to Monday's 22,896 all-time high but is losing upside momentum with the daily Relative Strength Index (RSI) displaying negative divergence. This increases the odds of at least a short-term retracement lower soon taking place.
The steep April-to-July uptrend line at 22,506 is expected to be revisited and perhaps the 1 July low at 22,388 as well. Were this level to give way, a medium-term top may be formed with the 22,000 region being back in sight.
A rise above Thursday's 22,896 record high would engage the 161.8% Fibonacci extension target at 22,930 and 23,000 mark.
EUR/USD holds at support
EUR/USD has come off its 3 3/4 year high at $1.1830 and slid to $1.1683 on Tuesday before stabilising. While this level underpins, the 13 August 2021 peak at $1.1805, early July high at $1.1830 and August 2021 high at $1.1909 will remain in sight.
Minor support below $1.1683 may be spotted around the August 2021 low at $1.1664 and the 12 June high at $1.1632. Since these levels previously acted as resistance, because of inverse polarity, they are expected to act as support, if revisited that is.
WTI is heading back up again
WTI's swift recovery from its $65.57 per barrel Monday low has taken it to the 200-day simple moving average (SMA) at $68.37 which acts as minor resistance.
Were it and Tuesday's high at $68.87 to be overcome, the late March high at $70.18 would be back in the frame.
Minor support below the 2 July high at $67.55 can be spotted around the late June high at $66.39.
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