(MENAFN– Daily Forex) The dow jones industrial average declined in its recent trading on intraday levels, recording losses in its last session by -0.34%, to lose about -112.96 points. It settled at the end of trading, away from its highest level during the session at the level of 33,517.66, after the index achieved sharp gains during Trading on Friday increasing by 2.13%.
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The Dow Jones gave up strong early gains to close slightly lower, ahead of an expected speech from federal reserve Chairman Jerome Powell on Tuesday and inflation data on Thursday.
Those early gains were an extension of the index’s sharp rise on Friday, which came after the Labor Department revealed its employment statistics for December. Headline numbers pointed to another month of strength in the labor market, however, there were signs of slowing wage growth.
Investors interpreted Friday’s data as a signal that the Federal Reserve may not need to maintain its hawkish monetary policy as many had feared.
As for the reason for the index’s rebound late in the day after Mary Daly, President of the Federal Reserve Bank of San Francisco, said she expects the central bank to raise interest rates above 5% to reduce inflation. Daly said during an interview with the Wall Street Journal: ‘I think that something Above 5 is definitely in my opinion going to be likely.’
Atlanta Federal Reserve Chairman Raphael Bostic on Monday also reiterated his forecast for interest rates to rise above 5%, according to news reports.
Meanwhile, the Federal Reserve Bank of New York said on Monday that its December survey of consumer expectations showed that consumers see inflation running at 5% year-on-year from now. Since July 2021.Dow Jones Technical Analysis
Technically, the index is trying in today’s trading to gain some positive momentum that may help it maintain the positive momentum that it gained in last Friday’s trading. It came from the index’s reliance on supporting its simple moving average for the previous 50-day period, with positive signals coming from the relative strength indicators. The index is also affected by its penetration earlier for a bearish corrective slope line in the short term, as shown in the attached (daily) period chart.
Therefore, our expectations suggest that the index will rise again during its upcoming trading, as long as the 32,582.00 support level remains stable, to target the pivotal and nearby 34,281.36, resistance level in preparation to attack it.
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