Dow jones(US 30) tests supply area
The Dow jones(US 30) dropped over 600 points as traders digested the latest tariff data. On the chart, the index is looking for some retracement as price action moves back up towards 43000. A break here could look for a full recovery in the medium term. The general sentiment remains bearish since more tariffs are expected. The bounce around 42500 has kept bulls in check, but its breach would force bears to open the door to an extended rally at 42000.
USDJPY catches its breath
The Japanese yen continues to pull the dollar lower after President Trump’s recent tariff announcements. The pair’s latest move past the psychological level of 150.00 now acts as fresh resistance. A subsequent break below 149.00 indicated solid commitment from sellers. However, with a bullish divergence emerging on the RSI, a bounce higher attracted momentum buyers looking to cash in on the dip. A break above 150.00 would attract more bulls and send the pair to the previous swing high of 151.10.
EURAUD continues the rally
The Euro continued to rally against the Aussie as price action now tests the 1.7000 barrier. A close above 1.6950 put the bears on the defensive, and a move towards 1.7070 would suggest more upward pressure. As traders await the next bounce with the pair, a steeply overbought RSI could cause concern that a reversal is imminent and could trigger a sell-off towards 1.6700. A confirmation break at 1.6850 would first be needed.