(MENAFN- Daily Forex) The dow jones industrial average settled unchanged during its recent trading on intraday levels, achieving almost unnoticed gains, gaining about 1.58 points only. It settled at the end of trading at the level of 33,597.93, after falling sharply during Tuesday's trading by -1.03%. The index declined during the current week as, by the moment of writing this report, it dropped by -2.42%.
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There weren't much economic data on Wednesday but markets are waiting for more important data than the weekly jobless claims data later in the day, as the labor market was a strong sector of the slowing economy. This made it difficult for the Fed to tame inflation , the government will also release a report on Friday that will provide more detail on how inflation is affecting business. The University of Michigan will release its December survey of consumer sentiment on Friday.
The reports do not usually move the markets but they get a lot of attention because they will give more clues about how the Federal Reserve will handle the pace of rate hikes in the future, especially before its meeting next week.
The central bank is expected to raise interest rates by half a percentage point at its meeting next week and has raised the benchmark interest rate six times since March. It pushed it to a range of 3.75% to 4%, the highest rate in 15 years, Wall Street expects. That the benchmark price will reach a peak range of between 5% and 5.25% by mid-2023.
Meanwhile, the Labor Department said on Wednesday that non-farm productivity measures the change in output per worker. It rose at an annualized rate of 0.8% in the latest quarter. Dow Jones Technical Analysis
Technically, the index is trying, in its recent trading, to search for a bullish bottom from which to base it to help it gain the necessary positive momentum to restore its recovery and rise again. The index is affected by an earlier breach of a bearish corrective slope line in the short term, as shown in the attached chart for a period (daily). Positive pressure continued for its trading above its simple moving average for the previous 50-day period, and we note during that that the relative strength indicators have reached areas that are highly oversold. This was exaggerated compared to the movement of the index, which suggests the start of a positive divergence in it.
Therefore, our expectations suggest that the index will rise again during its upcoming trading, as long as the 33,248.61 support remains stable,to target once again the important and stubborn 34,281.36 resistance level .
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