EUR/USD on Meltdown Watch, Nasdaq 100 Holds Steadfast After Bullish Breakout

Technical analysis of the EUR/USD pair

The Euro rallied significantly against the US Dollar between March and early May, but the bullish momentum faded and the tables turned in the blink of an eye after prices failed to breach the psychological $1.1100 level, a major technical ceiling worth paying close attention to.

In recent weeks, EUR/USD has probed the $1.1075/$1.1100 range several times, but has been pushed lower on every occasion, with the pair retreating and trading at $1.0825 on Wednesday afternoon after its latest failed attempt to remove overhead resistance.

Although the outlook remains positive, the EUR bulls have good reasons for concern as the exchange rate appears to be heading towards the 1.0820/1.0785 confluence support at the time of writing. To resume the upward trend, this floor must hold; Otherwise, a pullback towards 1.0705 could be restricted.

On the other hand, if EUR/USD establishes a base around the 1.0800 handle and bounces off those levels, the initial resistance is at 1.0910. A sustained move above this barrier could attract new buyers into the market, encouraging them to take another step at the highs in 2023.

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Technical chart of the EUR/USD pair

EUR/USD chart set up using TradingView

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Nasdaq 100 technical analysis

The Nasdaq 100 broke through the important technical resistance at 13,370 last Wednesday, extending its upward march into 2023 and achieving new highs for the year despite several headwinds such as rising interest rates, a looming recession, and the possibility of a US default in the face of the crisis. Deadlock in Congress to raise the debt ceiling.

Although the directional moves were limited in recent sessions, as shown on the daily chart below, the technology index managed to sustain the bullish breach last week while slowly rising, indicating that the buyers have no intention of giving up yet.

With the NASDAQ 100 closing in on higher highs and lower lows, it may only be a matter of time before the bulls can successfully launch an assault on the 13,740 peak in August 2022. Conversely, if the sellers regain control of the market, initial support is at 13,730, followed by Psychic level 13000.

Nasdaq 100 technical chart

Nasdaq futures chart created using TradingView

BreakoutBullishEURUSDHoldsMeltdownNasdaqSteadfastWatch
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