The Dow Jones (US30) is experiencing high volatility as investors digest recent economic data and Federal Reserve statements. The latest U.S. ISM Services PMI came in stronger than expected, signaling economic resilience , but concerns remain about inflation and the Fed’s next move on interest rates .
Key Market Drivers:
Federal Reserve Rate Decision – Hawkish or Dovish?
Upcoming NFP Data – Job growth impact on the index
Bond Yields & USD Strength – Affecting institutional risk appetite
With economic uncertainty still in play, traders are looking for key structural levels to position themselves in the market.
Technical Analysis (1H Chart)
US30 is reacting from a strong demand zone (42,400 – 42,500), showing a possible reversal after a liquidity grab below recent lows.
Key Observations:
Break of Structure (BoS) at the lows, signaling potential bullish momentum
Change of Character (ChoCh) – Early signs of a shift from bearish to bullish
Premium/Discount Zone – Price is in a discounted area, offering potential long entries
Liquidity Sweep – Stops taken out before an impulsive move upward
Trade Setup & Targets:
Bullish Bias: Looking for long entries from the 42,400 – 42,500 demand zone
First Target: 43,112 (mid-range resistance)
Second Target: 43,858 (supply zone)
Invalidation: Below 42,400 – If price breaks lower, expect further downside
Confluence: The combination of smart money concepts (BoS, ChoCh, liquidity grab) and fundamental factors supports a potential bullish reversal. Traders should watch price action closely and confirm momentum before entering.
Final Thoughts
US30 is showing signs of demand zone strength, but macroeconomic risks remain. Traders should stay cautious and monitor how price reacts at key levels. A confirmed break above 43,112 could fuel a rally toward 43,858 and beyond.
How are you trading US30 this week? Bullish or Bearish? Let’s discuss below! ⬇️