Amidst today's high-impact news release on new home sales during the US trading session, economists anticipate higher sales figures at 680K compared to the previous 664K. However, despite the optimistic forecast, market movement remains subdued following last week's robust 2.5% bullish rally.
Last week's surge led US30 to a bullish market sentiment, with the EMA 50 now catching up with the price. Prices are expected to find support, at least temporarily, at the EMA 50, potentially continuing their bullish trajectory. Both the EMA 50 and 200 exhibit bullish momentum, indicating a sustained upward trend.
Key support levels to monitor lie around the Fibonacci retracement levels of 23.6% to 38.2%, coinciding with the EMA 50. A break below the lower Bollinger band may signal a deeper retracement to the 50% or 61.8% retracement levels, aligning with the EMA 200.
Examining the MACD and RSI indicators reveals continued bullish signals. The MACD signal line remains above the 0 line, while the RSI maintains its bullish stance, yet to dip below the 40% level.
Overall, the US30 index is currently experiencing a pullback, potentially manifesting as either a deep or shallow retracement. The outcome of the new home sales data could influence market direction, potentially pushing prices higher if the figures exceed forecasted expectations.
Forecast 680K vs Previous 664K
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