(MENAFN– Daily Forex) The Dow Jones Industrial Average continued to rise during its recent trading at the intraday levels, to achieve gains for the fourth consecutive session, by 0.60%, to add 191.66 points to it. It settled at the end of trading at the level of 32,120.29, after rising in Tuesday’s trading by 1.98%.
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The Federal Reserve released its meeting minutes in early May, showing support for half-point moves by the Fed as it seeks to make the sovereign interest rate ‘quick to neutral’ over the next two meetings, and high inflation remains the main focus. This indicated that the central bank remains open to rethinking aggressive plans to raise interest rates to tame high inflation.
The minutes also focused on potential direct sales of mortgage securities to the central bank as it looks to cut its balance sheet approaching $9 trillion.
In other economic news, the highlights of Wednesday’s calendar were smaller-than-expected gains in new orders for durable goods and another dip in mortgage applications. New orders for durable goods rose 0.4% in April, while shipments rose 0.1%. Excluding transportation, new orders rose 0.3% and shipments rose 0.2%. Earlier today, the Mortgage Bankers Association reported that mortgage applications fell 1.2% in the week ending May 20 after a 11% drop in the previous week’s report.
Technically, the index’s stability above the main resistance level of 32,000 is considered a positive sign for the index, especially amid the continued influx of positive signals in the RSI indicators . Despite this, the corrective bearish trend is still the dominant trend in the short term with the index trading in a price channel range, as shown in the attached chart. For a period of time (daily), while the negative pressure continues for its trading below the simple moving average for the previous 50 days.
Therefore, we still expect the index’s decline to return during its upcoming trading , especially if its stability returns below the 32,000 level, after which it will target the main support level 31,000.
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