The Dow Jones Industrial Average Index continued to rise during its recent trading at the intraday levels, to achieve gains for the fifth consecutive day, by 0.71%. It added to it about 239.57 points, and settled at the end of trading at the level of 34,152.02.  to close the index at its highest level since late April/ April, after rising 0.45% during trading on Friday.

Walmart (WMT) was the strongest performer on the Dow, with the stock up 5.1% at the close, after the company said it no longer expects a significant decline in profits during fiscal year 2023. It also announced second-quarter results that topped estimates driven by a rise Prices and lower supply chain costs.

In addition, Home Depot’s second-quarter financial results topped Wall Street views as demand for home improvement remained strong despite the inflationary environment, while the retailer reiterated its full-year outlook, and the company’s shares jumped 4.1% to be also among the top gainers among companies. listed on the indicator.

Economic Data Outlook

US industrial production rose 0.6%, compared to expectations for a 0.3% increase in a Bloomberg survey and after a flat reading in June, capacity utilization rose to 80.3% from 79.9%, compared to guidance, which rose to 80.2%.

Housing starts fell 9.6% in July to an annual rate of 1.446 million units, the lowest since February 2021 and below market expectations of 1.54 million, according to the US Commerce Department.

Technically, the index continues to rise amid being affected by the positive support provided due to its trading above its simple moving average for the previous 50 days. This is light of its exit from the range of a bearish corrective price channel that limited its previous trading in the short term. This is shown in the attached chart for a (daily) period, reaching In its recent trading to attack the resistance level 34,118.

We notice the start of a negative crossover on the RSI, after reaching overbought areas, which may curb the index’s upcoming gains, especially in the event that the resistance level 34,118 remains intact.

Therefore, we expect more rise for the index during its upcoming trading, but on the condition that it first overcome the resistance obstacle 34,118, and then target the resistance level 34,820.

Ready to trade the Dow Jones in Forex? Here’s a list of some of the best CFD brokers to check out.

The Dow Jones Industrial Average continues the corrective rise during its recent trading at the intraday levels, very slightly. The index achieved gains in a session characterized by volatility by 1.12%, to gain about 346.87 points, settling at the end of trading at the level of 31,384.69 last Thursday, after its decline during trading on Tuesday by -0.42%. However, the value of the index decreased on Friday by a very slight percentage, as the Dow Jones Industrial Average (DJIA) dropped to achieve losses by 0.15%, equivalent to 46.40 points, to settle at the end of trading at the level of 31,338.16.

Members of the Federal Reserve’s Monetary Policy Committee decided at its meeting last month that a further 50 or 75 basis points hike in the policy rate was “likely appropriate” in July, as it struggles to rein in inflation.

At its June meeting, the Federal Open Market Committee raised the federal funds rate by 75 basis points, its largest increase in nearly 30 years, in response to levels of inflation not seen in nearly four decades. The central bank has raised interest rates in each of the past three meetings, with further hikes likely in the upcoming meetings.

On the other hand, by looking at the technical analysis of the Dow Jones Industrial Average, we find that it has come close to reaching the historical support point, which had reached its peak in the history of last January of the year 2020, at the level of 29,504.85 points, as it reached the lowest correction level for the Dow Jones Index. During the month of June, it reached the level of 29706.45 points, where the best levels of the Dow Jones buy recommendations are at the support prices of 29504.85 points, in addition to the price level of 27495.00 points.

The Dow Jones Industrial Average rose slightly during its recent trading at the intraday levels, to achieve gains in a session characterized by volatility by 0.23%, It gained about 69.86 points, to settle at the end of trading at the level of 31,037.69, after declining during Tuesday’s trading by -0.42 %.

Energy, financial and consumer discretionary stocks were the only losers, while the utilities sector led the way.

US stocks rose on Wednesday after the minutes of the Federal Reserve’s June monetary policy meeting showed the central bank’s eagerness to tame overheating inflation.

Members of the Federal Reserve’s Monetary Policy Committee decided at its meeting last month that another 50 or 75 basis points hike in the policy rate was “likely appropriate” in July, as it struggles to rein in inflation.

At its June meeting, the Federal Open Market Committee raised the federal funds rate by 75 basis points, its largest increase in nearly 30 years, in response to levels of inflation not seen in nearly four decades. The central bank has raised interest rates in each of the past three meetings, with further hikes likely in the upcoming meetings.

According to the document, participants have realized that policy constancy can slow down the pace of economic growth for some time, but see that a return of inflation to 2% is critical to maximizing job opportunities on a sustainable basis, and the next meeting of the Federal Open Market Committee is scheduled for 26 and 26 Next July 27.

Technically, the index’s rise came with the support of the influx of positive signals in the relative strength indicators. The index hovered for the fourth consecutive session around the main support level 31,000, in light of the dominance of the short-term bearish corrective trend along a slope line, with the negative pressure continuing for its trading below the simple moving average for a period of 50 In the previous days, we also notice in the midst of this that the RSI indicators reached overbought areas, as shown in the attached chart for a (daily) period.

Therefore, our expectations suggest a return to the index’s decline during its upcoming trading, especially as long as the resistance level 31,000 remains stable, to target the support level 29,653.30.

We still expect the index’s decline to return during its upcoming trading.

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%.

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.

Gold futures contracts continued to achieve their gains, supported by the decline in the price of the US dollar. The gains of the gold price reached the level of 1870 dollars per ounce, then returned to stability around the level of 1858 dollars per ounce.

In general, the yellow metal was trying to withstand in the face of a myriad of developments that would make it difficult for the rise in gold prices, especially on the monetary policy front. It shows the demand that the public has for the precious metal.

All in all, gold prices are now trading at their best levels since May 11, driven by a weaker US dollar. Since the beginning of 2022 to date, the price of gold has increased by more than 1%. Silver, the sister commodity to gold, made modest gains. As silver futures rose to $21.723 an ounce. The white metal has fallen more than 7% over the year and more than 22% in the past 12 months.

Gold was surprisingly resilient during a rally in global financial markets and may have benefited from the weak dollar.

The US Dollar Index (DXY), which measures the performance of the US currency against a basket of major currencies, fell to 102.11 and a weak profit is a good thing for dollar-denominated commodities as it makes them cheaper to buy for foreign investors. Higher Treasury yields capped gold’s rally, with 10-year bond yields at 2.859%. One-year yields rose 2.6 basis points to 2.1026%, while 30-year yields rose 0.4 basis points to 3.07%.

The gold market is usually sensitive to a high interest rate environment because it raises the opportunity cost of holding non-yielding bullion. However, market analysts acknowledge that gold prices have benefited from lower nominal and real rates.

In other metals markets, copper futures fell to $4,335 a pound. Platinum futures fell to $943.40 an ounce. Advanced palladium futures contracts to 1976.00 dollars an ounce.

According to gold technical analysis: On the daily chart below, the price of gold is still in the phase of exiting the bearish channel and moving towards the resistance levels of 1878 and the psychological top of 1900 dollars. This will confirm the stronger control of the bulls on the trend. In general, I still prefer buying gold from every descending level, despite the tendency of global central banks to tighten their monetary policy, which is negative for gold. It finds momentum from other factors, most notably the continuation of the Russian-Ukrainian war and the persistence of the epidemic in the negative impact on the second largest economy in the world.

The closest support levels for gold are currently 1848, 1832 and 1820 dollars, respectively. The gold market will be affected today by the reaction of the US dollar to the announcement of the contents of the minutes of the last meeting of the US Federal Reserve.

After Lagarde’s recent hawkish statements, the price of the EUR/USD currency pair is trying to maintain the gains of those statements, which brought it to the resistance level 1.0748 and settles around the 1.0698 level at the time of writing the analysis. Today is important for EUR/USD because of the announcement of the content of the minutes of the last meeting of the Federal Reserve US. I still prefer to sell the Euro-dollar, despite the European Central Bank’s signals, but the markets are confident that the Federal Reserve is the strongest and the fastest in the pace of raising interest rates.

Commenting on the recent performance of the Eurodollar. FX markets have miscalculated the value of the euro in relation to the risk of higher interest rates by the European Central Bank, according to a Scandinavian bank and investment bank. DNB Markets said in a new research note on currency performance that forex investors appear to be ignoring the risks posed by the European Central Bank to tighten policy, causing the euro to depreciate as a result.

They add risks to the outlook for the EUR, tilting to the upside.

Just last week the Sterling was talking about increasing expectations that were dropping in our inbox saying that the Euro was at risk of falling to parity against the Dollar. But, a few days later, the odds of this possibility seem to have diminished somewhat due to the major turnaround in the European Central Bank (ECB).

In general, the price of the euro rose at the beginning of the new trading week after the European Central Bank President Christine Lagarde reinforced expectations of a rate hike in July. “I expect net in-app purchases to end very early in the third quarter,” Lagarde said. “This will allow us to raise the interest rate at our meeting in July, in line with our forward guidance.”

“The conditions facing monetary policy have changed significantly,” Lagarde added in a blog aimed at addressing investors’ evolving expectations of future ECB policy. Three shocks combined to push inflation to record levels.”

Lagarde’s comments follow comments from other board members who have warned of a change in policy.

This was also confirmed with the release of last week’s ECB meeting minutes which indicated that a 50bp hike was now possible. However, Lagarde appears to suggest that the deposit rate will rise from -0.50% to 0% by September, hinting at two increases of 25 basis points.

“The interest rate market has already priced this in, so the reaction there to Lagarde’s comments has been moderate so far,” the analysts said. However, the EURUSD has risen significantly, confirming that the FX and interest rate markets have been a bit out of sync lately when it comes to expectations of the European Central Bank clamping down on them.” In other words: the FX market seems to have ignored that the European Central Bank is also ready to tighten monetary policy soon, which in our view is one of the reasons for the EURUSD to fall to artificially low levels.

Currently, forex investors are now waking up to the fact that the European Central Bank will join the Federal Reserve and other global central banks in tightening monetary policy.

According to the technical analysis of the pair: I still expect that the recent rebound gains for the EUR/USD may be temporary and for factors that will quickly evaporate. The July date is still far away, and I see that Lagarde confirmed from his statements to ease the selling operations on the euro, especially since the Russian-Ukrainian war is still in progress. The future of energy to Europe is becoming more uncertain better selling EURUSD from the 1.0690 and 1.0775 resistance levels, respectively.

On the downside, the 1.0500 support level remains the most important for the bears to launch in the path of the stronger and clearer channel on the daily chart below. The euro-dollar currency pair will react strongly today with the announcement of the growth of the German economy, in addition to the reaction from the announcement of US durable goods orders, and most importantly, the content of the minutes of the last meeting of the Federal Reserve.

Our expectations indicate the likely scenario of a return of the stock’s decline during its upcoming trading.

The Dow Jones Industrial Average continued to rise during its recent trading at the intraday levels, to achieve gains for the third consecutive day, by 1.34%, to gain 431.17 points, to settle at the end of trading at the level of 32,654.60, after rising by 0.08% in Monday’s trading.

24 of the index’s 30 components, led by percentage, were up Boeing Co. by 6.45%, followed by American Express Co. by 3.46%, then shares of JPMorgan Chase & Co. by 3.31%.

On Tuesday, the Census Bureau reported that retail sales for April rose 8.2% year-on-year, up from March’s 7.3% increase. The result shows that the consumer still has power.

In addition, industrial production rose 1.1% in April, the Federal Reserve reported on Tuesday, beating expectations for a 0.5% gain.

“There could be some pain” for Americans as the Fed moves aggressively to bring down inflation, Federal Reserve Chair Jerome Powell said Tuesday afternoon at the Wall Street Journal’s Future of Everything event. But, he said, “there are a number of reasonable paths to getting a soft landing.”

Technically, the index’s rise comes in support of the influx of positive signals in the relative strength indicators after it reached areas of oversold activity. It is trading within the range of its price channel, as shown in the attached chart for a (daily) period, with the negative pressure continuing. The simple moving average for the previous 50 days attributes the index’s rise as an attempt to compensate for some of its previous losses.

Therefore, our expectations indicate the likely scenario of a return of the stock’s decline during its upcoming trading, as long as the resistance level 33,271.90 remains intact, to target the support level 32,000 in preparation to break it.

We expect the lira to continue to decline, especially if the pair closed the highest levels of psychological resistance at 15.00.

Today’s recommendation on the lira against the dollar

Risk 0.50%.

The sell trade of the recommendation was activated on Thursday and a profit was exited with you resting the stop loss point and closing half the contracts with the price moving towards the target

Best entry points buy

• Entering a long position with a pending order from 14.68 . levels
• Set a stop-loss point to close the lowest support level 14.46.
• Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
• Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the strong resistance levels at 14.85.

Best selling entry points

• Entering a short position with a pending order from 14.99 . levels
• The best points for placing a stop loss are closing the highest levels of 15.08.
• Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
• Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the support levels 14.40

The Turkish lira continues to decline against the US dollar, which is witnessing great demand from investors in light of the expectations of the continuation of the monetary tightening policy by the US Federal Reserve. The lira is experiencing a special kind of pressure with Turkish President Recep Tayyip Erdogan’s insistence on reducing the interest rate, contrary to what central banks around the world have followed.  This raised the interest rate in the wake of the Fed’s decision to raise the interest rate by 50 basis points. At the present time, amid the economic decline in the country, the Turkish Central Bank could not keep pace with Erdogan’s desire to reduce the interest rate, as it was satisfied with fixing it since the beginning of the year. This contrasts with a series of cuts he followed over the past year, which pressured the lira to lose about half of its value. Reports of high inflation also contributed to the pressure on the lira. Data appeared at the end of last week showing a rise in the inflation rate in the country to 70 percent, which is record levels that have not been recorded for decades.

On the technical front, the Turkish lira fell slightly against the dollar during today’s trading, as the Turkish currency continued to decline. However, the Turkish lira is still trading within a limited trading range. It is noticed that the pair exceeded the demand areas shown on the chart. The pair also rose above the moving averages 50, 100 and 200, respectively, on the four-hour time frame as well as on the 60-minute time frame. The pair is trading the highest support levels, which are concentrated at 14.90 and 14.87 levels, respectively. On the other hand, the lira is trading below the resistance levels at 15.00 and 15.10. We expect the lira to continue to decline, especially if the pair closed the highest levels of psychological resistance at 15.00. Please adhere to the numbers in the recommendation with the need to maintain capital management.

The sharp decline will likely take a breather in the coming days.

Bullish View

• Buy the AUD/USD and set a take-profit at 0.7495.
• Add a stop-loss at 0.7390.
• Timeline: 1-2 days.

Bearish View

• Set a sell-stop at 0.7400 and a take-profit at 0.7300.
• Add a stop-loss at 0.7500.

The AUD/USD pair attempted to recover after the surprise interest rate decisions by the Reserve Bank of New Zealand (RBNZ) and Bank of Canada (BOC). The pair is trading at 0.7440, which is a few points above this week’s low of 0.7395.

More Pressure on RBA

This month, the Reserve Bank of Australia hinted that it will start hiking interest rates in June this year. In the statement, the bank hinted that it was starting to lose patience with its inflation target.

The bank could now come under pressure from other central banks. For example, the Fed has started hiking interest rates and has hinted that it will become more aggressive in the coming months. Analysts expect that the bank will deliver about 6 more hikes this year.

On Wednesday, the RBNZ caught many analysts by surprise when it delivered a bigger hike than expected. It pushed its benchmark interest rate to 1.50% from the previous 1.0% in its biggest rate hike in 22 years.

The BOC also decided to hike interest rates by another 0.50%. Similarly, the BOE has already delivered three rate hikes since December last year. Therefore, analysts believe that the RBA will also become more aggressive in the coming months.

The AUD/USD pair is also reacting to the latest jobs numbers. According to the Statistics Agency, the country’s unemployment rate remained at 4.0% in March. This performance was worse than the median estimate of 3.9%. The economy added 17.9k jobs in March after it added another 77k job in the previous month.

The pair will next react to the latest retail sales and export and import price index data from the United States.

AUD/USD Forecast

The AUD/USD pair declined to a low of 0.7400 this week. A closer look shows that it formed a small double-bottom pattern in this level. On the four-hour chart, the pair is trading at an important level since it was its highest point on March 7th. It is also slightly below the 25-day and 50-day moving averages while the MACD has formed a bullish crossover pattern.

Therefore, the sharp decline will likely take a breather in the coming days. If this happens, the next key resistance will be at 0.7495.

Today’s recommendation on the lira against the dollar

Risk 0.50%.

None of the buy or sell trades of yesterday’s recommendations were activated.

Best buy entry points

• Entering a buy position with a direct order from the current levels 14.71
• Set a stop loss point to close the lowest support levels 14.36.
• Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
• Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the strong resistance levels at 14.85.

Best selling entry points

• Entering a short position with a pending order from 14.86 . levels
• The best points for setting the stop loss are closing the highest levels of 14.98.
• Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
• Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the support levels 14.40

The Turkish lira rose during the early trading today, although it moved at the same weak pace that continued to decline during the past two weeks. While there are negative expectations for the Turkish lira, a survey of the Turkish Central Bank showed expectations of a number of sectors, which showed a decline of the lira by the end of the year to levels between 16.60 and 16.80. The news related to raising the interest rate is also prompting a faster pace in the United States, as other reports showed a shift in the policy of the European Central Bank. This may shift to raising the interest rate by the end of this year to increase pressure on the future of the lira. On the data front, the Turkish Statistical Office released unemployment data for the month of February, which showed a decline to 10.7 percent, compared to 11.4 percent in January.

The Turkish lira’s trading rose against the dollar during the early trading. The US dollar pair continued trading within a narrow trading range after it reached the lower limit of the bullish price channel on the 240-minute time frame, to complete its decline in a general bearish trend against the dollar. The moving averages 50, 100 and 200 respectively on the four-hour time frame, while the pair rose above those averages on the 60-minute time frame. The pair is also trading the highest support levels, which are concentrated at 14.71 and 14.65 levels, respectively. On the other hand, the lira is trading below the resistance levels at 14.76 and 14.85, respectively. Please adhere to the numbers in the recommendation with the need to maintain capital management.