A look at US Indices & US Dollar after the latest drama from the Trump administration

Markets seem to be shrugging off of the latest dramatic deadline pushback from the Trump Administration – after menacing Japan, South Korea and other Asian countries for 25% tariffs in a letter sent yesterday that sent markets shaking, the renewed TACO trade is in getting priced in.

The July 9th deadline recently got pushed back again to August 1st, allowing trade negotiations to continue.

Markets got scared yesterday and the Dow particularly suffered from the headlines, closing down 0.94% from its open.

Participants learn from their mistakes, and knowing with who they are treating, they are starting to put less emphasis on all the headlines.

US President Donald Trump is the author of the 1987 The Art of the Deal publication, reminding that words and talks are just a part of negotiation schemes.

Sentiment is currently mixed and the current session is not showing any signs of concrete direction – The Dow opened down small, and the Nasdaq and S&P 500 are up small from the latest pushback.

Only the US Dollar is appreciating from the most recent tariff headwinds, leaving markets waiting again.

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The Nasdaq is starting to form a local top as sentiment goes from Ecstatic to Confusion.

Last week was all about renewed hopes for conclusion of deals and better US Data, leading to new all-time highs for the Tech-focused index.

The 1H 50-period Moving Average is appearing as immediate Resistance and the current open is mixed, tilting slightly bearish with the RSI in the selling region

Levels to place on your charts:

Resistance Zones:

• Current ATH (CFD) – 22,922
• Current main resistance 22,900
• 1H MA 50 - 22,750

Support Zones:

• Immediate Pivot – 22,700 Region (above = bullish, below = bearish)
• 1H MA 200 – 22,615
• Current Support Zone 22,450
• Previous ATH Support Zone 22,250

Very similar reactions for the S&P 500, as sellers are starting to come in from the failure to breach the 6,300 key level.

One thing to spot for current sentiment and probabilities of newer trends is the reaction to the immediate pivot (level detailed just below).

One thing that tilts the technicals to slightly bearish is the break of the past week's upward trendline, similar to the Nasdaq – Keep an eye on this one.

Levels to place on your charts:

Resistance Zones:

• Current Resistance around 6,300
• Current ATH (CFD) – 6,290
• 1H MA 50 – 6,245

Support Zones:

• Current Pivot 6,220
• 1H MA 200 – 6,206
• Current Support Zone around 6,130

The Dow is looking a bit more concretely bearish after failing to surpass its 45,060 all-time highs while forming a double-top at 44,910.

Some buyers have just stepped in but the Daily picture is still close to unchanged – Markets are preparing for more headlines as the msot recent drama from the US Administration just provided more uncertainty, once again.

Levels to place on your charts:

Resistance Zones:

• Current Resistance 44,800 to 45,060
• Current highs – 44,910
• 1H MA 50 – 44,544

Support Zones:

• 1H MA 200 44,175
• Current Pivot 44,000 Zone (+/- 100 points)
• 43,000 Main Support Zone

Although trading close to overbought levels, the US Dollar is starting to look technically less bearish than it was in the past weeks – particularly as the DXY recently touched the target of its Weekly, massive Head and Shoulders (lows around 96.50).

Prices just broke out from the Main descending channel as uncertainty and still heavily one-sided selling positioning is leading to position covering.

Watch for either a reversal upwards, a concrete breakout can be expected above the 98.00 psychological handle – or rangebound action at current levels.

Levels to place on your charts:

Resistance Zones:

• Immediate Pivot 97.60 to 97.80
• Current Resistance 98.00 Zone
• Main Resistance 99.20 to 99.40

Support Zones:

• 1H MA 50 97.25
• Current Low Consolidation Support 97.00 Zone
• 2025 Lows around 96.50

Safe Trades!