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.
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 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'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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