Forex Trading Library

Intraday Analysis – Double Top Drop for the Dow 30

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The Dow 30 stuck sideways
Chart illustrating sideways movement of the Dow 30

The Dow Jones 30 clawed back some losses as traders cautiously waited for the Fed’s next move. As the sideways consolidation continues, a drop of 300 points has awoken the bears. A drop down to 38450 is next, but it needs a 38750 break first. Failing that, the current trend could be ignored, with a break above 39300 leading to more record highs in the medium term.

AUDUSD another rejection
Chart showing AUDUSD rejection from recent top at 0.6600

The Australian dollar moved away from its recent top after progress data came out of America. A close below the psychological handle of 0.6600 has created a bearish divergence that threatens to lower prices. 0.6570 is the next support, with a move to 0.6480 in sight. A bullish breakout could extend towards 0.6640, but heavy resistance is at the recent swing high.

NZDUSD drops at double top
Chart displaying NZDUSD retreat after double top rejection at 0.6170.

The Kiwi retreated after a firm rejection at the recent double top. A close below the recent double spike at 0.6170 has forced buyers to cover their positions, turning the short-term mood around. A temporary retracement could allow bulls to switch sides, and a break past 0.6200 would see the pair attempt a triple top. On the downside, 0.6120 is the next support as the price hangs.

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