Fundamental Perspective:
US30 consolidated as markets assessed downbeat US NFP data, marked by sharp downward revisions for Apr and May, indicating a cooling labor market. Average hourly earnings rose by 0.3% in Jun, below the market forecast of 0.4%.
The modest wage increase and downward revisions in job figures could reinforce expectations of a Sep Fed rate cut, potentially supporting the US30 rally.
However, uncertainty surrounding the US elections may temper its upside as traders proceed cautiously.
Technical Perspective:
US30 continued consolidating between the 39000-40000 range as the index approached the ascending channel’s lower bound and EMAs, which serve as dynamic support.
If US30 regains its bullish momentum with a break above 40000, the index might rise further towards the 127.2% Fibonacci extension at 41800.
Conversely, a bearish breakout of the channel and 39000 support could prompt a further decline towards the next support at 37200.