djia

Last week’s advance halted at 7-month range resistance

Fig 1: US Wall St 30 medium-term trend as of 17 Jul 2023 (Source: TradingView, click to enlarge chart)

Since the 13 December 2022 high of 34,944, the US Wall St 30 Index (proxy of the Dow Jones Industrial Average futures) has continued to oscillate within a 7-month sideways range configuration.

The 3% rally from the 10 July 2023 minor low of 33,595 has been rejected at the 34,640 range resistance for the third time last Friday, 14 July, and confluences with a major descending trendline that capped previous up moves since the 29 March 2022 high.

Summary: President Joe Biden's announcement of possible easing of tariffs on goods from China fairing well for U.S stocks. Euro expected to continue strengthening. Read next: Xpeng (XPEV) Earnings Results Cause Share Price To Fall U.S stocks showing signs of recovery The Dow Jones Index rose almost 2% during the trading day on Monday. U.S stocks recovered on Monday in the wake of investors coming-off a 7 week losing streak. The recovery comes after investors received some fresh-trade related information from the Biden Administration. On Monday President Joe Biden announced that he was considering easing tariffs on Chinese goods due to the belief that the tariffs caused financial harm on consumers and businesses. DJIA Price Chart ECB Interest rate hike is confirmed The Euro exchange rate performed well on Monday thanks to the European Central Bank's president confirming that there will be interest rate hikes in July. The Euro responded well to this information and strengthened against both the US Dollar and the Pound. Leading up to the confirmation of the rising interest rates, the Euro had been strengthening, in the wake of the interest rates being risen, investors believe that the Euro will continue to strengthen. Read next: Altcoins: Ripple Crypto - What Is Ripple (XRP)? Price Of XRP | FXMAG.COM Sources: finance.yahoo.com, poundsterlinglive.com Follow FXMAG.COM on Google News

Summary: Dow Jones industrial gains on Friday. GBP reacts well to Sunak’s stimulus package Read next: (COST) Costco Beats Market Expectations DJIA sees relief on Friday The Dow 30 rose on Friday as signs of peaking inflation and consumer resilience instilled investor confidence entering the long weekend, backing positive attitudes towards tightening monetary policy. Investors may be leaning toward the Fed tightening monetary policy without tipping the US economy into a recession. The Dow Jones benefited from this market sentiment. Data released on Friday indicated that consumer spending exceeded market expectations and drove the DJIA upwards, which drove investor confidence higher. DJIA Price Chart Pound Sterling reacts well to Sunak’s announcement The GBP may have stabilised in the wake of Sunak´s announcement of a stimulus package, however, concerns that the UK economy is heading into a recession still looms. The stimulus to try and save the UK economy may be short lived, what the greater impact will be on the UK economy is still a concern going forward. Sources: finance.yahoo.com, poundsterlinglive.com

Summary: Dow 30 closes just above breakeven after a day of volatility. BoJ continues monetary easing. Read next: (AMZN) Amazon Stock Split Comes At A Bad Time DOW 30 closes just above breakeven On Tuesday the Dow Jones experienced a lot of volatility, the mixed investor sentiment comes in the wake of retail giant Target giving the market a profit warning, which renewed investor concerns about the economic outlook. The Dow 30 is still in the green today as the index struggled to find a direction during Tuesday's trading session. The Dow closed just above breakeven on Tuesday. DJIA Price Chart Japanese Yen hits lows The Bank of Japan (BoJ) announced that they have no plans to tighten monetary policy to fight rising inflation, instead they will be continuing with monetary easing. This move has seemingly encouraged bearish sentiment for the safe-haven currency. The Governor indicated that the only way to fight the pressure the Japanese economy has been feeling from the income side in the wake of rising commodity prices is through monetary easing. This announcement put the USD/JPY currency pair almost at levels not seen since 1998. Sources: finance.yahoo.com, poundsterlinglive.com

Summary: Investor uncertainty. Canadian Dollar Read next: EUR/USD Falls Below Parity, Eurozone Energy Crisis Concerns Persist (EUR/GBP), Hawkish BoC (USD/CAD), USD/JPY The Dow 30 closed almost 0.5% down The Dow Jones Industrial Average (DJIA) closed almost 0.5% lower at the time of market closing on Thursday. The fall in the Dow comes in the wake of investor uncertainty as recession and earnings discussions from major banks continue whilst still reeling from the release of US inflation data that shocked the markets and prospects of a 100 basis point interest rate hike from the Federal Reserve. DJIA Price Chart Canadian Dollar On Wednesday the Bank of Canada (BoC) shocked the financial markets with their largest cash rate hike since 1998 of 1%. The hawkish move from the BoC has offered the Canadian Dollar support and has thrown a curveball at investors, leaving a range of responses from analysts. The current cash rate are at their highest level since October 2008, the move had outdone the Federal Reserve in its methods of bringing down local inflation. BoC raised its cash rate 100 bps from 1.5% to 2.5%. Sources: finance.yahoo.com, fxmag.com, poundsterlinglive.com

Dow Jones Industrial Average (DJIA) has underperformed the S&P 500 and Nasdaq 100 in the past two weeks. Last Friday’s initial bullish price actions of DJIA retreated at 34,630 key range resistance. Minor uptrend from the 10 July 2023 low of 33,595 has shown signs of exhaustion. Last week’s advance halted at 7-month range resistance Fig 1: US Wall St 30 medium-term trend as of 17 Jul 2023 (Source: TradingView, click to enlarge chart) Since the 13 December 2022 high of 34,944, the US Wall St 30 Index (proxy of the Dow Jones Industrial Average futures) has continued to oscillate within a 7-month sideways range configuration. The 3% rally from the 10 July 2023 minor low of 33,595 has been rejected at the 34,640 range resistance for the third time last Friday, 14 July, and confluences with a major descending trendline that capped previous up moves since the 29 March 2022 high. Short-term momentum has flashed a bullish exhaustion signal Fig 2: US Wall St 30 minor short-term trend as of 17 Jul 2023 (Source: TradingView, click to enlarge chart) The hourly RSI oscillator has flashed a bearish divergence signal at its overbought region which suggests that it is likely the upside momentum of the minor short-term uptrend from the 10 July 2023 low of 33,595 has been exhausted which in turn increases the odds of a minor decline. Watch the 34,630 key medium-term pivotal resistance to maintain the short-term bearish bias with near-term support coming in at 34,320. A break below it exposes the next supports at 34,000 and 33,840. However, a clearance above 34,630 sees a potential bullish breakout from the 7-month range with the intermediate resistance coming in at 34,940 in the first step.