Dow Jones is under selling pressure 8/3/2023

The Dow Jones Industrial Average fell after the Federal Reserve Chairman gave his semi-annual testimony before the Senate yesterday, recording as low as 32824.

Technically, the 50-day simple moving average returned to pressure the price from above. It meets near the 32,940 level, adding more strength to it and the negative signals coming from the relative strength index and its stability below the mid-line 50.

With the stability of daily trading below 32,940, the bearish trend is the most likely during the day, provided that we witness a clear and strong break of the support floor of 32,820, and that extends the index’s losses, so we are waiting to touch 32,620, the first target, and after that, 32,400, respectively, unless we witness the consolidation of the index price again above 32940.

Note: The risk level may be high.

Note: Today, we are awaiting high-impact economic data, and we may witness high volatility in prices, and irregular movements may occur:

• ADP Employment Change 

• JOLTS Job Openings in US and Employment Change in Eurozone

• The semi-annual testimony of Jerome Powell, Chairman of the Federal Reserve, before the Senate.

• ECB’s President Lagarde’s speech 

• Bank of Canada interest rate decision and statement.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 32620	R1: 33290
S2: 32385	R2: 33730
S3: 31950	R3: 33965