(MENAFN- Daily Forex) The dow jones Industrial Average rose again in its recent trading on intraday levels, to achieve gains in its last sessions by 0.56%. It gained about 186.45 points, and settling at the end of trading at the level of 33,704.11, after its decline during Tuesday's trading by -0.34%. Advertisement test out your technical skills now! open a free demo account
Investors were waiting for the Federal Reserve Chairman's speech at an international symposium in Sweden, in an attempt to find some clues about the path of raising interest rates in the future of the federal reserve . However, Powell's statements came without fat, as Powell did not address interest rate policy or the outlook for the economy.
Powell said that the Fed's independence is critical to helping central banks achieve their mission in that it insulates monetary policy decisions from short-term political considerations. He also stressed that the central bank is not a 'climate policymaker', 'Restoring price stability when inflation is high could require actions that are uncommon in the short term because we raise interest rates to slow the economy.'
Markets are now pricing in a 78.2% probability of a 25bp increase in the Fed meeting in February, with a 21.8% probability of a 50bp increase.
Federal Reserve Governor Michelle Bowman was among the latest officials to warn that interest rates must rise further to bring inflation down to the 2% target.
On the economic data front, wholesale inventories figures on Tuesday showed inventories rose 1% in November as companies stockpiled ahead of the holiday.
Meanwhile, sales fell 0.6%, and a measure of small business optimism in December fell less than economists had expected.
A monthly update of the US CPI report is scheduled for release on Thursday, while on Friday the fourth quarter corporate earnings season will begin.Dow Jones Technical Analysis
Technically, the index found some positive momentum from its reliance on the support of its simple moving average for the previous 50-day period, with the presence of positive signals in the relative strength indicators, despite reaching highly overbought areas. All of this comes in light of its impact on the breach of a bearish corrective slope line in the short term, and that earlier as shown in the attached graph for a time period (daily).
Therefore, our expectations indicate more rise for the index during its upcoming trading, as long as the 32,582.00 support remains intact, to target the pivotal
34,281.36 resistance level, in preparation to attack it.
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