On the daily chart below for the
Dow Jones, we can see that after the major breakout of the trendline and the 32684 resistance, the market rallied strongly and
managed to break above the key 33538 resistance consolidating just above it.
The trend is now bullish as we can see from the moving
averages.

The market seems to be trading
again on the goldilocks scenario where inflation comes down on its own without
major losses in the labour market. In fact, the latest NFP
report showed moderating wage inflation with a tight jobs market. The next big
event is US CPI tomorrow.

Dow Jones technical analysis

On the 4 hour chart below, we can
see more closely the consolidation just above the 33538 resistance. This may be
due to both negative and positive news we got the last week coupled with the
Easter Holidays that led to lower liquidity and a more cautious price action.
Today European traders come back from the holidays and the market should come
back to its normal trading regime. The key releases to watch this week are the
US CPI tomorrow and the US Jobless Claims on Thursday.

In the 1 hour chart below, we can
see the mini range highlighted by the blue rectangle. The buyers will want to
see a break above the upper bound of the range to start piling in and extend
the move to higher highs with 34477 as the ultimate target. The sellers, on the
other hand, will want to see a break below the lower bound of the range to jump
in and target lower lows with 32684 as the major target.

This article was written by ForexLive at www.forexlive.com.