(MENAFN- Daily Forex) The dow jones Industrial Average slid down during its recent trading on the intraday levels, to incur sharp losses in its last sessions by -1.63%. The index lost about -530.49 points, and settled at the end of trading at the level of 32,030.12. It rose during Tuesday's trading by 1.0%. 0.98%.
Advertisement test out your technical skills now! open a free demo account Stock indices were mostly directionless prior to the Fed's announcement, then pulled back as investors digested the accompanying statement and subsequent question-and-answer session by Chairman Jerome Powell.The Fed raised the federal funds rate by 25 basis points to 4.75%-5% as expected, and the Fed's forecasts point to another increase this year. In the Fed statement, FOMC members said that some additional tightening could be possible, but indicated that it is about to cap future hikes in light of the recent turmoil in the financial sector. Gains eased during Powell's remarks and question-and-answer session in which he pledged to use all available tools to maintain the integrity of the banking system but reiterated the central bank's commitment to reining in inflation.During the press conference, Fed Chairman Jerome Powell said pauses were considered in the days leading up to the meeting which pushed stocks higher. However, minutes later, he said that inflation remains high and that the central bank remains committed to returning inflation to 2%. They stressed that, if necessary, rates will rise further, and that the committee does not see interest rate cuts this year.The sell-off was exacerbated by Treasury Secretary Janet Yellen's remarks to lawmakers that the Federal Deposit Insurance Corporation (FDIC) is not considering "universal insurance" of deposits arising from the recent conflict in the sector.Technical Outlook:Technically, the index succumbed to the negative pressure that resulted from the stability of the important resistance level 32,582, the resistance that we had referred to in our previous reports. This was considering its trading along a bearish corrective trend line in the short term, with the continuation of negative pressure for its trading below the simple moving average for the previous 50-day period. This is shown in the attached chart for a period (daily), and this came despite the presence of positive signs in the relative strength indicators.Therefore, we expect more declines for the index during its upcoming trading, as long as the 32,582 resistance remains stable, to target the support level at 31,727.00 in preparation to break it.Ready to trade the dow jones 30 ? We've shortlisted the best cfd brokers in the industry for you.
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