US Tech analysis: the index is heading towards a new all-time high after breaking the resistance level

After consolidating, The US Tech index has breached the resistance level. It is heading towards a new all-time high, with the speech by Federal Reserve Chair Jerome Powell serving as a fundamental driver.

US Tech trading key points

• Recent data: US core PCE inflation eased to 2.6% year-over-year in June
• Economic indicators: the US Federal Reserve primarily focuses on PCE inflation when making interest rate decisions; this indicator’s behaviour contributes to monetary policy easing by the regulator
• Market impact: in his recent speech, Federal Reserve Chair Jerome Powell noted falling inflation and a noticeably improving situation
• Resistance: 19,990.0, Support: 19,655.0
• US Tech price target: 20,300.0

US Tech fundamental analysis

Federal Reserve Chair Jerome Powell stated that recent economic data showed inflation was back on a downward path but added that officials needed more data before lowering interest rates.

“As the US economy and employment market are strong, we can take our time and do it right, and this is exactly what we plan to do,” Powell said. It is worth noting that the US employment market data will be released on Friday. A sharp increase in the unemployment rate may change Powell’s outlook.

US Tech technical analysis

The US Tech stock index has consolidated below the 19,990.0 support level for over a week. Yesterday, this level was breached, with support now shifting to 19,655.0. Further growth potential enables the price to reach the 20,300.0 mark. The asset continues to experience a strong uptrend.

Key levels to watch include:

• Resistance level: the 19,990.0 level was breached yesterday, with a potential target for further growth at 20,300.0
• Support level: 19,655.0 – a breakout below this level will indicate a trend reversal and the beginning of a deep correction to the 18,500.0 target

Summary

Federal Reserve Chair Jerome Powell acknowledged positive US inflation dynamics. Employment market data will be crucial this week as it may change the regulator’s plans regarding the pace of interest rate reduction. After consolidating for over a week, the price breached the 19,990.0 resistance level, targeting 20,300.0. Breaking below the 19,650.0 support level will signal the beginning of a downtrend.