US Federal Reserve Chairman Jerome Powell announced yesterday that inflation indicators have reached a level that makes ready the situation for a reduction in bond-buying programs as well as a reduction in expansionary policies. As a result of this news, bond yields in the market have increased. This, along with concerns about the crisis of the Chinese company Evergrande, has led to a relative reduction in the level of risk in the stock markets.
Technically, the Dow Jones Index is currently moving in a short-term uptrend after a bullish wave. Therefore, the probability of a short-term uptrend and pullback has risen to the 34560 level. In the medium term, the Dow jones index has reached the PRZ level from the Ichimoku cloud and Moving averages of 34 and 55 days and has had a corrective reaction to it. Then the index’s response to the mentioned level will be decisive.
The possible decline in expansionary policies has boosted demand for the USD, directly impacting USD related instruments such as the GBPUSD and the EURUSD. The GBPUSD has now returned to a bearish trend after a short bullish correction, and technically, the first possibility is that the price will continue to decline to the support level of 1.36.