Dow Jones US30 Chart Technical Outlook can retest 38,500 support on a hawkish Fed
The Dow Jones has been going through a moderate pullback since Friday when a strong US Nonfarm Payrolls report spooked investors. The rebound from late-May lows seems to be losing steam and today, the US CPI and the Fed’s decision might tip the balance to the downside.
US CPI is expected to have remained steady in May, with Core inflation easing somewhat. The Fed will keep interest rates unchanged bit they are highly likely to dial down their interest rate projections for 2024. This might hurt demand for equities.
A hawkish Fed is likely to send the index to retest the 38,500 level. Below here, the next target is 38,065. Resistances are 38,880 and 39,154
