The Dow Jones Industrial Average has resumed its decline and is testing its March-to-August uptrend line, with a break potentially opening the door to further losses toward the mid-June high. AUD/USD, meanwhile, has pushed to a two-and-a-half-month high after clearing a key Fibonacci retracement level, while US natural gas futures continue to trade sideways after a brief spike.
The Dow Jones Industrial Average has resumed its descent and is weighing on its March-to-August uptrend line at 52,764, a fall through which may lead to the mid-June high at 52,286 being reached. Key support sits at the 51,547 July low, and a fall through this level may indicate that a medium-term top is forming.
Dow Jones drops further still
Immediate resistance may now be seen around the late July high at 52,907 and the mid-July 52,930 peak. The short-term outlook stays bearish while the index holds below the 19 August high at 53,715, even as the medium-term outlook remains bullish while the index holds above the 23 July low at 51,547.
AUD/USD trades at 2 1/2-month high
AUD/USD continues to climb, having smashed through the 61.8% Fibonacci retracement of the May-to-June decline at $0.7121, putting the March peak at $0.7187 and the 78.6% Fibonacci retracement at $0.7189 in focus. The move should stay in play while Wednesday's low at $0.7067 underpins it, with the medium-term outlook targeting the $0.7200-to-$0.7300 region while the 6 August low at $0.7023 holds.
US natural gas holds its range
US natural gas futures found support near their May and early August lows at 253.2 on Monday and briefly touched a near one-month high at 274.9 before retreating. Further sideways trading within the current August range of 274.9 to 250.4 remains probable in the days ahead, with the medium-term outlook staying bearish below the 23 July high at 289.4.
Source: IG – News and trade ideas
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