Macro approach:
- The Dow Jones Industrial Average advanced this week, rebounding strongly as risk appetite improved following last week’s pullback, supported by a soft jobs report and easing global tariff concerns.
- Sentiment was aided by the Fed’s increased hopes of a near-term rate cut after Non-farm Payrolls missed expectations, prompting a 1.3% surge on Monday. Broader market sectors responded favorably to resilient earnings and softer economic prints.
- The index may remain sensitive to upcoming US inflation data, US service sector data and Fed communications, with labor market softness and further trade headlines poised to influence direction this and next week.
Technical approach:
- US30 significantly rebounded yesterday, erasing half of the losses from the last 5-losing streak last week. The price is hovering around EMA21, indicating a short-term sideways momentum and await for an apparent breakout to determine the trend.
- If US30 breaks above key resistance at 45000, the price may surge further to test the Fibo Extension confluencing area around 46800.
- On the contrary, failing to hold above the support at 43325, confluence with EMA78, may prompt a deeper correction to the following support at 41750.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- The Dow Jones Industrial Average advanced this week, rebounding strongly as risk appetite improved following last week’s pullback, supported by a soft jobs report and easing global tariff concerns.
- Sentiment was aided by the Fed’s increased hopes of a near-term rate cut after Non-farm Payrolls missed expectations, prompting a 1.3% surge on Monday. Broader market sectors responded favorably to resilient earnings and softer economic prints.
- The index may remain sensitive to upcoming US inflation data, US service sector data and Fed communications, with labor market softness and further trade headlines poised to influence direction this and next week.
Technical approach:
- US30 significantly rebounded yesterday, erasing half of the losses from the last 5-losing streak last week. The price is hovering around EMA21, indicating a short-term sideways momentum and await for an apparent breakout to determine the trend.
- If US30 breaks above key resistance at 45000, the price may surge further to test the Fibo Extension confluencing area around 46800.
- On the contrary, failing to hold above the support at 43325, confluence with EMA78, may prompt a deeper correction to the following support at 41750.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.