<p>On the daily chart below, we can
see that the Dow hasn’t done much since the end of last year. Recently, the
price got even stuck in a tight range between the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 34477 and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at 33538. </p><p>The bias is turning more bearish
as the hot economic data is making the market to rethink its expectations about
earlier than expected pause in interest rates hikes and cuts by the end of this
year. In fact, the market now sees a higher terminal rate with almost no cuts
in 2023. </p><p>On the 4 hour chart below, we can
see more closely the current rangebound price action with the support at 33538
holding pretty well. This is the worst environment for traders as one can be
chopped out pretty easily on both sides. The best strategy would be to wait for
a clear breakout on either side before taking any position. </p><p>In the 1 hour chart below, we can
see that the price bounce from the support and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are now pointing north. This may be a signal that the price can move up
again towards the resistance, but the recent catalysts are all bearish for the
market. If one wants to “play the range” then buying at support and selling at
resistance with defined risk is the only way to go for now. </p>
see that the Dow hasn’t done much since the end of last year. Recently, the
price got even stuck in a tight range between the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 34477 and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at 33538. </p><p>The bias is turning more bearish
as the hot economic data is making the market to rethink its expectations about
earlier than expected pause in interest rates hikes and cuts by the end of this
year. In fact, the market now sees a higher terminal rate with almost no cuts
in 2023. </p><p>On the 4 hour chart below, we can
see more closely the current rangebound price action with the support at 33538
holding pretty well. This is the worst environment for traders as one can be
chopped out pretty easily on both sides. The best strategy would be to wait for
a clear breakout on either side before taking any position. </p><p>In the 1 hour chart below, we can
see that the price bounce from the support and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are now pointing north. This may be a signal that the price can move up
again towards the resistance, but the recent catalysts are all bearish for the
market. If one wants to “play the range” then buying at support and selling at
resistance with defined risk is the only way to go for now. </p>
This article was written by ForexLive at www.forexlive.com.