Markets Test Critical Technical Levels Ahead of US CPI Report

Markets are testing technical levels that will define the second half of 2026, as geopolitical developments and shifting Federal Reserve policy expectations drive risk sentiment.

The US Dollar Index is pulling back toward rising support near 99.30, a key level defining its bullish 2026 structure.

The S&P 500 is approaching the 7,790 resistance zone, with momentum entering overbought territory across both daily and hourly time frames.

This week's US CPI report could help define the next phase of Fed monetary policy expectations and confirm either breakouts or rebounds from the technical levels currently in focus.