<p class=“MsoNormal“>On the daily chart below, we can
see that the sellers leant on the strong <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> zone at the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> where we had <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> and the resistance level at 32684. </p><p class=“MsoNormal“>The price has sold off from that
area as the Fed hiked interest rates by 25 bps and left everything else unchanged,
including QT and the Dot Plot besides the market pricing rate cuts this year.
So, the Fed is still resolute in bringing inflation down to their 2% target but
has also acknowledged risks around the banking sector.</p><p class=“MsoNormal“>Dow Jones technical analysis</p><p class=“MsoNormal“>On the 4 hour chart below, we can
see that after rejecting the trendline and the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level, the price sold off pretty heavily before
bouncing the following day. The moving averages have crossed to the downside
meanwhile, which may be an early signal of a change in trend. </p><p class=“MsoNormal“>In the 1 hour chart below, we can
see that the sellers will now need a clear break below the 32225 level to gain
some control and start targeting the low at 31645. In case the sellers manage
to break the low, we may see a bigger selloff to the 31000 level. </p><p class=“MsoNormal“>The buyers, on the other hand,
will need to break above the trendline and the 32684 resistance level to regain
control and target the next resistance at 33500. </p>
see that the sellers leant on the strong <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> zone at the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> where we had <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> and the resistance level at 32684. </p><p class=“MsoNormal“>The price has sold off from that
area as the Fed hiked interest rates by 25 bps and left everything else unchanged,
including QT and the Dot Plot besides the market pricing rate cuts this year.
So, the Fed is still resolute in bringing inflation down to their 2% target but
has also acknowledged risks around the banking sector.</p><p class=“MsoNormal“>Dow Jones technical analysis</p><p class=“MsoNormal“>On the 4 hour chart below, we can
see that after rejecting the trendline and the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level, the price sold off pretty heavily before
bouncing the following day. The moving averages have crossed to the downside
meanwhile, which may be an early signal of a change in trend. </p><p class=“MsoNormal“>In the 1 hour chart below, we can
see that the sellers will now need a clear break below the 32225 level to gain
some control and start targeting the low at 31645. In case the sellers manage
to break the low, we may see a bigger selloff to the 31000 level. </p><p class=“MsoNormal“>The buyers, on the other hand,
will need to break above the trendline and the 32684 resistance level to regain
control and target the next resistance at 33500. </p>
This article was written by ForexLive at www.forexlive.com.