Dow Jones Technical Analysis

<p>On the daily chart below, we can
see that the sellers failed to break decisively the <a target=“_blank“ href=““>support</a> level at 32684 on the first try.
This may be just a pullback before more economic data confirms the new
downtrend. </p><p>We got some bearish stuff in the
past days with the “prices paid” sub-index in the <a target=“_blank“ href=““>ISM
Manufacturing PMI</a> report showing a jump back into expansion and <a target=“_blank“ href=““>Fed’s
Waller</a> yesterday signalling that the Fed will go above their projected
terminal rate if the data keeps coming in strong. </p><p>Today we will have the <a target=“_blank“ href=““>ISM Non-Manufacturing PMI</a> report and if that beats
expectations, especially in the “prices” sub-index, then we should see the
support breaking and more selling pressure coming in going forward. </p><p>On the 4 hour chart below, we can
see that the price has been consolidating near the support as the market awaits
more economic data before confirming the bearish trend. </p><p>On the upside, we may see the
buyers pushing the price into the 33538 <a target=“_blank“ href=““>resistance</a> where we can also find 50% <a target=“_blank“ href=““>Fibonacci
retracement</a> level, but that looks unlikely unless today’s
report misses expectations. On the downside, we should see the sellers jumping
in strongly in case the report beats expectations with a breakout of the
support at 32684 very likely. </p><p>In the 1 hour chart below, we can
see the more near-term price action. The buyers may manage to get to the 38.2%
Fibonacci retracement level before the PMI report which would act a strong
resistance and would be a gift for the sellers if the data beats expectations.
On the downside, more aggressive sellers may also enter at the breakout of the <a target=“_blank“ href=““>trendline</a> in expectation that the support
won’t hold. </p>

This article was written by ForexLive at

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