Intraday Analysis – Dow Jones 30 Ignores Fed Decision

US30 bounces back

The Dow Jones 30 rallied as the Fed delivered the higher for longer approach to their interest rate. Whereas the Nasdaq and S&P both slipped, the Dow remained resilient. A move above the recent high of 38000 and the 30-day SMA has put bears under pressure, but with layers of support underneath, this is likely to be a consolidation rather than a bullish reversal. 37600 from the base of the last bottom could be the last saviour before a continuation of the bearish trend.

USDJPY remains choppy

The Fed halted the bullish rally for the dollar after hitting multi-year highs. Coming off this year’s high above 158.00, the pair wants to hold on as it loses more ground. 154.00 at the base of the previous rally is essential to keep the directional bias upward, as its breach would dent optimism and force bulls to bail out. The RSI’s oversold condition has attracted some bargain hunters, but 155.50 is the first obstacle to pass. A close above 156.00 could resume the choppy nature in the near term.

EURCAD testing daily resistance

After hitting heavy resistance, the Canadian dollar pulls back on its losses to the Euro. A break below the confluence of the recent swing low of 1.4660 and the 20-day SMA triggered a new round of liquidation. The new support of 1.4600 is a key level to prevent a deeper correction. 1.4720 is a fresh resistance with the recent double top and is a significant ceiling should bulls manage to return.

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