climb higher as the US economic data shows a resilient economy with a good
disinflationary trend despite an aggressive monetary tightening seen in the
past year and a half. In fact, despite the Fed members keep talking about two more
rate hikes coming this year, the market continues to rally as strong data
raises the chances of a soft landing. It’s likely that only ugly economic data
will start to weigh on the Dow Jones.
Dow Jones Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Dow Jones
found support at the
red 21 moving average as the
US Consumer Confidence report surprised to the upside and the buyers started to
lean on the moving average to position for another rally. The price has broken
above the key 34477 resistance again and it will now probably look towards the
35289 high.
Dow Jones Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price
couldn’t pull back all the way to the 34448 support where we had also the 61.8%
Fibonacci retracement level.
Instead, the Dow Jones started to bottom out on a previous swing high level and
jumped higher after the consumer confidence release. The moving averages have
crossed to the upside again as the trend turned bullish, and now the buyers
will target the 35289 resistance.
Dow Jones Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that from
a risk management perspective, a good support zone for the buyers would be the
34477 level where we can also find the 38.2% Fibonacci retracement level. The
sellers, on the other hand, will want to see the price breaking below the
support zone to pile in and target the 33448 level.
Upcoming Events
It’s
a full week on the data front
beginning with the US ISM Manufacturing PMI today, the US Jobless Claims and
ISM Services PMI on Thursday and concluding the week with the main event: the
US NFP.
This article was written by FL Contributors at www.forexlive.com.