Talking Points:
- The Dow Jones Industrial Average[1] has sold off every day since last week’s FOMC[2] and ECB rate decisions, tallying eight consecutive sessions. The index is now testing a big zone of support as we looked at yesterday, and this comes along with a deeper pullback in the US Dollar[3].
- Next week brings a series of interesting events, key of which are a few reports out of Europe later in the week along with a rate decision out of New Zealand on Wednesday.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[4] or the Euro[5] are available from the DailyFX Trading Guides page[6]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[7]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[8].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[9].
Dow Down Every Day Since FOMC, Can Buyers Break the Losing Streak?
The Dow Jones Industrial Average has sold-off now every day since the Fed’s rate hike last week. As we came into last week’s rate decision, US equities were fresh off the heels of bullish breakouts in April and May that held strong into early-June trade. But as FOMC neared, the Dow found resistance at the 14.4% Fibonacci retracement of the post-Election move[10], and after the FOMC and ECB outlays last week, selling pressure pushed prices-lower and that theme has
