Forex Trading Library

Intraday Analysis – Dow Drops 600 Points!

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The Dow Jones (US 30) attempts to rebound
The Dow Jones Drop Chart: Depicts the Dow Jones' significant drop with support and resistance levels.

The Dow Jones tumbled over 600 points as Boeing shares dropped over 7% in recent trading. The index is still trying to preserve its strength after hitting another fresh high, which saw the 40,000 level tested. 38500 is the latest support, and a move above 39300 would relieve the bearish pressure. 39550 along the 20-day SMA is a crucial hurdle ahead, and its breach could pave the way for a sustained recovery of 40,000.

USDJPY slowly recovering
USDJPY Recovery Chart: Shows USDJPY's gradual recovery with resistance and support levels.

The Japanese Yen conceded more ground to the dollar as the sell-off continued. The round number of 157.00 is the immediate resistance; further up 160.00 from the previous spike is the next target. As the Yen continues to be outweighed across the board, a revival to the downside seems unlikely. 156.50 is the first support should the buy side start to take profit, and 155.80 is a substantial floor.

EURGBP struggles for support
EURGBP Struggle Chart: Illustrates EURGBP's decline with key support and potential drop levels.

The euro slipped as the bloc’s yields ticked lower ahead of inflation data. The pair has remained under pressure after a continuous sell-off since the beginning of the month. This suggests that bears have been eager to sell into strength after the single currency sank below the daily support of 0.8530. Only a break above the mentioned zone would break the downward bias. Otherwise, a fall below 0.8500 would trigger a new round of sell-off and send the pair towards multi-year lows around 0.8430.

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