DJ: Technical Analysis - FED Holds Rates Steady Amid Economic..
FED Holds Rates Steady Amid Economic Balance
In its recent policy meeting, the Federal Reserve (FED) made the decision to maintain interest rates, clearly indicating that rate reductions are not currently on the table. This move suggests that potential rate hikes may be considered in the future. However, with the economy showing signs of balance and moderate improvement, it's a situation where a wait-and-see approach is warranted. As expected, the markets have experienced volatility in response to this decision.
From a technical perspective, the DJ remains within a bearish trend on the H4 timeframe. Despite the rally seen yesterday, the price has settled around the 61.8% Fibonacci retracement level from the previous swing. This level, approximately at 33,450, offers a promising opportunity for bearish traders to sell the DJ at a premium price and potentially ride the next impulsive leg downward to the swing low.
The impact of the FED's decision has resonated in the bond market as well. US Treasury yields saw a sharp decline following the announcement of unchanged interest rates, aligning with market expectations. This decrease in yields could potentially lead to a further test of their range supports before experiencing a rebound to maintain the range's integrity. German yields have also dipped, with room for further testing of support levels before resuming their overall uptrend. Meanwhile, the 5-year and 10-year Government of India (GoI) yields remain stable within their respective ranges.
As the FED's decision influences various financial markets and technical patterns take shape, traders and investors are closely monitoring these developments to make informed decisions in response to the evolving economic landscape.
In its recent policy meeting, the Federal Reserve (FED) made the decision to maintain interest rates, clearly indicating that rate reductions are not currently on the table. This move suggests that potential rate hikes may be considered in the future. However, with the economy showing signs of balance and moderate improvement, it's a situation where a wait-and-see approach is warranted. As expected, the markets have experienced volatility in response to this decision.
From a technical perspective, the DJ remains within a bearish trend on the H4 timeframe. Despite the rally seen yesterday, the price has settled around the 61.8% Fibonacci retracement level from the previous swing. This level, approximately at 33,450, offers a promising opportunity for bearish traders to sell the DJ at a premium price and potentially ride the next impulsive leg downward to the swing low.
The impact of the FED's decision has resonated in the bond market as well. US Treasury yields saw a sharp decline following the announcement of unchanged interest rates, aligning with market expectations. This decrease in yields could potentially lead to a further test of their range supports before experiencing a rebound to maintain the range's integrity. German yields have also dipped, with room for further testing of support levels before resuming their overall uptrend. Meanwhile, the 5-year and 10-year Government of India (GoI) yields remain stable within their respective ranges.
As the FED's decision influences various financial markets and technical patterns take shape, traders and investors are closely monitoring these developments to make informed decisions in response to the evolving economic landscape.
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Our preference
Below 34146.50 look for further downside with 32885 & 32325 as targets.