Chart the Market (27/05/2025)

Dow Jones, H4: 

The Dow Jones experienced a notable sell-off in the recent session, causing the index to break below its ascending channel, raising short-term caution. However, it continues to trade above both the 20-day and 50-day moving averages, indicating that the broader uptrend remains intact, provided the index holds above the key support level at 40,600.

From a momentum perspective, RSI failed to break into overbought territory, suggesting a weakening in bullish strength. Additionally, the MACD has formed a bearish crossover above the zero line, signaling a potential loss in upward momentum and hinting at a technical retracement.

While the longer-term trend remains constructive, the recent price action and softening indicators point to a period of consolidation or minor correction. A sustained hold above 40,600 will be critical in maintaining the bullish structure; a break below this level could open the door to deeper downside correction.

Resistance Levels: 43420.00, 45100.00

Support Levels: 40600.00, 39270.00

DXY, H4

The Dollar Index (DXY) continues to display clear bearish momentum, trading within a lower-high price pattern and having broken below the critical $100.00 support level in the previous session. This breakdown signals a firm bearish bias and reflects mounting selling pressure.

The index has now slipped to a new monthly low below the 99.00 mark, further reinforcing the downtrend. Momentum indicators support this bearish outlook: the RSI is following a similar lower-high trajectory and is nearing the oversold zone, indicating persistent downward pressure. Meanwhile, the MACD has crossed below the zero line and continues to edge lower, confirming that bearish momentum is accelerating.

Unless a strong reversal occurs, the current technical setup suggests the bearish trend may extend further, with downside risks intensifying in the near term.

Resistance Levels: 99.15, 100.30

Support Levels: 98.00, 96.50