After the FOMC yesterday, the US 30 index initially moved higher to test towards 25000.00 but failed, as it ran into the blue trend line resistance and faded down to a low of 24679.5, which has been taken out this morning. Today’s low is extending to 24522.2. This paints a bearish picture for the index, as the tech industry gets hit and risk sentiment is weak. Major support is found at 24200.0, with a loss here creating a lower low and putting the February low of 23108.0 in focus. The rising 200 DMA is located at 23600.0 today and may see buyers step back into the market, for a repeat of the February rally. Failure to do so puts a question mark over the market, which is already trading flat on the year.
Should bulls find support, a rally above the falling red tend line at 25184.0 is needed to wrest control from bears. The 50 DMA is located at 24950.0, with further resistance at 25500.0 and 25821.0. A move above these levels targets 26200.0 and the high at 26700.0.
The GBPJPY pair will be actively traded today, as the BOE decides on its Monetary Policy and Rates. Price rose to test broken support as red trend line resistance yesterday and pulled back today to the combined 50 and 100 DMAs at 149.695. The inability to stay above 150.000 is a concern for long traders, with resistance firming around this area. There is further resistance at 150.500, as the trend line rises. The next level of resistance comes at 151.920, followed by 153.086 and 154.568 above. The rising broken blue resistance trend line is at 155.675, with the high of 156.597 overhead.
Support can be found at the 149.366 level and the 200 DMA at 148.398. A drop under there puts the 146.885 level in focus, as a loss of it creates a lower low and targets the low at 144.975. The rising blue support trend line, which originates at the April 2017 low, is located at 145.500 and contains 3 touches.