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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Soft NFP Data Could Slow Rate Hike Pace

By:
James Hyerczyk
Published: Jul 8, 2022, 10:05 UTC

The blue chip average edged higher on Thursday on less-hawkish comments from a couple of Fed officials.

E-mini Dow Jones Industrial Average

In this article:

September E-mini Dow Jones Industrial Average futures are inching lower on Friday as investors await a key jobs report due to be released at 12:30 GMT. The blue chip average edged higher the previous session on less-hawkish comments from a couple of Fed officials.

At 09:37 GMT, September E-mini Dow Jones Industrial Average futures are trading 31279, down 88 or -0.28%. On Thursday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $313.88, up $3.47 or +1.12%.

The June employment report due on Friday is expected to show another month of strong hiring as the labor market bucks any signs of an impending recession or economic slowdown, CNBC said. Economists expect the report to show the U.S. economy added 250,000 jobs last month and that the unemployment rate will remain flat at 3.6%, according to Dow Jones.

In other news, two of the Federal Reserve’s most vocal hawks on Thursday said they would support another 75 basis-point interest rate increase later this month but a downshift to a slower pace afterward, even as both downplayed the risk of higher borrowing costs pushing the United States into recession, Reuters reported.

Daily September E-mini Dow Jones Industrial Average

Short-Term Outlook

Trader reaction to the short-term 50% level at 31447 is likely to determine the direction of the September E-mini Dow Jones Industrial Average futures contract early Friday.

Bullish Scenario

A sustained move over 31447 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into the resistance cluster at 31867 to 31874.

A move through 31867 will change the main trend to up. While taking out the Fibonacci level at 31874 could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 31447 will signal the presence of sellers. This could lead to a labored break with potential targets a series of retracement levels at 31099, 30753 and 30490.

Taking out the main bottom at 30331 will signal a resumption of the downtrend.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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