<p>In terms of technical analysis, the Dow Jones and the broader market had a lot to digest after the latest fed announcement. Fed has <a target=“_blank“ href=“https://www.forexlive.com/centralbank/federal-reserve-hike-rates-by-25-bps-vs-25-bps-expected-20230201/“ target=“_blank“ rel=“follow“>hiked
by 25 bps as expected</a> and signaled “ongoing increases” as they want to
reach their terminal rate in the 5% area before pausing. </p><p>Everything that came out of this
event was expected by the market, even a hawkish press conference. In fact, the market rallied
even if the <a target=“_blank“ href=“https://www.forexlive.com/centralbank/powell-qa-it-is-important-that-financial-conditions-reflect-policy-restraint-in-place-20230201/“ target=“_blank“ rel=“follow“>Fed
Chair Powell signalled “a couple more hikes”</a> coming at the next meetings. The
market is now more focused on economic data rather than the Fed because we are
at the end of their tightening cycle.</p><p>So, what’s next then? Looking
ahead there are two big risk events on Friday: the NFP report and the ISM
Services PMI. Since the resilience in the labour market is what is giving
the market confidence in a “soft landing”, we can expect that a beat or as
expected data should give the bulls confidence to reach higher highs. </p><p>A miss may be bad news though as
it will be the first one in a long time and given that the risks of a “hard
landing” are not yet out of the equation, the market may go into risk off. For
the ISM Services PMI the same playbook should apply. </p><p>DOW JONES Technical Analysis</p><p>In the daily chart above, we can
see that the market is basically ranging. Bulls and Bears have their reasons
and both sides may be right as we are navigating really unique times. </p><p>You can feel the uncertainty on
both sides. For now though, the bulls have the upper hand and the next target
should be the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“ target=“_blank“ rel=“follow“>resistance</a> in the 35200 price area. </p><p>In the 4 hour chart above, we can
see that there’s a clear <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“ target=“_blank“ rel=“follow“>support</a> at 33500 and the price keeps
on trading around it like a magnet. The near term resistance is at 34477,
which is what the bulls need to break to maintain a bullish bias towards the
35200 resistance area. For now, the price action may just range.</p><p>Zooming in to the 1 hour chart, we
can see the levels that should define the next moves. Stay above the 34477
level and the bulls will have control. Stay below the 33538 level and the bears
will regain control.</p>
by 25 bps as expected</a> and signaled “ongoing increases” as they want to
reach their terminal rate in the 5% area before pausing. </p><p>Everything that came out of this
event was expected by the market, even a hawkish press conference. In fact, the market rallied
even if the <a target=“_blank“ href=“https://www.forexlive.com/centralbank/powell-qa-it-is-important-that-financial-conditions-reflect-policy-restraint-in-place-20230201/“ target=“_blank“ rel=“follow“>Fed
Chair Powell signalled “a couple more hikes”</a> coming at the next meetings. The
market is now more focused on economic data rather than the Fed because we are
at the end of their tightening cycle.</p><p>So, what’s next then? Looking
ahead there are two big risk events on Friday: the NFP report and the ISM
Services PMI. Since the resilience in the labour market is what is giving
the market confidence in a “soft landing”, we can expect that a beat or as
expected data should give the bulls confidence to reach higher highs. </p><p>A miss may be bad news though as
it will be the first one in a long time and given that the risks of a “hard
landing” are not yet out of the equation, the market may go into risk off. For
the ISM Services PMI the same playbook should apply. </p><p>DOW JONES Technical Analysis</p><p>In the daily chart above, we can
see that the market is basically ranging. Bulls and Bears have their reasons
and both sides may be right as we are navigating really unique times. </p><p>You can feel the uncertainty on
both sides. For now though, the bulls have the upper hand and the next target
should be the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“ target=“_blank“ rel=“follow“>resistance</a> in the 35200 price area. </p><p>In the 4 hour chart above, we can
see that there’s a clear <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“ target=“_blank“ rel=“follow“>support</a> at 33500 and the price keeps
on trading around it like a magnet. The near term resistance is at 34477,
which is what the bulls need to break to maintain a bullish bias towards the
35200 resistance area. For now, the price action may just range.</p><p>Zooming in to the 1 hour chart, we
can see the levels that should define the next moves. Stay above the 34477
level and the bulls will have control. Stay below the 33538 level and the bears
will regain control.</p>
This article was written by ForexLive at www.forexlive.com.