The Dow Jones Industrial Average #INDU at the beginning of the American session is rebounding after having broken the 200 EMA and having found support in the 7/8 area of murray. We expect a confirmation of a pullback towards the level of 34,309. If it fails to consolidate above, this level will be a good selling opportunity targeting 6/8 of murray.
The safe-haven US dollar index is retreating after having reached the level of 92.81. It is now in the overbought zone. The markets are likely to take advantage of this correction and the Dow Jones index may continue with its technical correction, as the markets will turn to risky assets.
According to the 4-hour chart, the Dow Jones is now under downward pressure as it is located below the 21 SMA and the 200 EMA. Therefore, the outlook will remain bearish.
The technical reading of the eagle indicator is showing a bearish signal. So, every time the Dow Jones approaches resistance levels, it will be a good selling opportunity.
Our recommendation is to sell the Dow Jones #INDU, as long as it is below 34,309, this area could exert pressure for a decline to the support of 33.593 6/8 murray level.
Support and Resistance Levels for July 08 - 09, 2021
Resistance (3) 34,369
Resistance (2) 34,674
Resistance (1) 34,303
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Support (1) 33,930
Support (2) 33,740
Support (3) 33,491