Talking Points:
- US Equities have continued to pullback after last week’s FOMC[1] and ECB rate decisions, and prices in the Dow are fast approaching the support zone that we’ve been following, taken from the 23.6% Fibonacci retracement of the post-Election move in the index.
- Bears have remained in-control, and if this support zone does not hold, the trend-line taken from the February, April and May lows is exposed as a potential point of deeper support. This can support downside breakout strategies should prices display an inability to hold above this key zone.
- DailyFX Forecasts are available from the DailyFX Trading Guides page[2]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[3]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[4].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[5].
Equity Sell-Off Continues, Dow Approaching Support Zone
US stocks have continued to sell-off since last week’s FOMC rate decision[6], and prices in the Dow Jones[7] are now approaching the support zone that we looked at last Friday[8]. During this sell-off, both bearish targets at 24,750 and 24,624 have been met, and the big question now is whether we get a revisit to the support zone that we were previously looking at for potential long scenarios.
Last week’s resistance came-off of the 14.4% Fibonacci retracement[9] of the post-Election move in the index, and prices are now fast approaching
