August opened with a wave of optimism across the US technology sector. President Donald Trump announced the cancellation of a planned military strike on Iran and signaled his intention to return to the negotiating table, triggering a sharp drop in oil prices. Market participants read the easing of geopolitical tensions as an indication that inflationary pressures could also begin to subside, given that energy costs feed directly into consumer prices and transportation inputs.

Further support came from the Federal Reserve's decision on 29 July to hold the benchmark interest rate steady at 3.5–3.75%, a move that was not unanimously agreed upon. The dissent underscores that the committee remains divided on whether current policy is sufficiently restrictive, a debate investors will be watching for clues in upcoming Fed statements and economic data prints. Combined, these developments helped rekindle investors' risk appetite, with demand rotating notably into large-cap technology stocks—names whose long-duration earnings profiles tend to be especially sensitive to the interest-rate outlook.

Technical Analysis of Nasdaq 100

Since mid-July, the Nasdaq 100 index (NDXm on FXOpen) had been trading within a short-term downtrend defined by a descending trendline. The index eventually declined toward the 27,100 area, identified by the green support zone on the chart. From that level, the price reversed course, breaking above the descending trendline and recovering approximately half of the preceding decline.

After a brief consolidation phase, the current market profile took shape, with the index now trading above the profile's upper boundary at 28,600. The next significant overhead level is the base of the previous trend at 29,200, marked as the red resistance zone.

If the current direction were to reverse, several key technical levels would come into play. The Point of Control (POC) at 28,400 represents the nearest zone of peak trading activity over the analysed period. Below that sit the lower boundary of the market profile at 27,750 and the green support level at 27,250, positioned near the trend low.

The RSI + MAs indicator currently shows readings of 64, 58, and 49. While the oscillator suggests the current move may have room to continue, the slower moving average remains in neutral territory, leaving the bullish signal unconfirmed.

Summary

The Nasdaq 100's near-term trajectory is likely to hinge substantially on how the situation surrounding Iran negotiations unfolds. Any renewed escalation in geopolitical tensions could trigger fresh selling pressure on the index, whereas further diplomatic progress may open the path toward higher price levels.