Chart the Market (07/08/2026)
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Chart the Market (07/08/2026)

Published: 7 August 2026,10:09

Published: 7 August 2026,10:09

Chart The Market

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Dollar Index,  H4:                                                               

The Dollar Index (DXY) remains under notable bearish pressure after failing to sustain gains above the 101.30 resistance area. The index has broken below its medium-term ascending trendline and fallen beneath the 100.75 and 100.20 support levels, signalling a clear deterioration in the broader bullish structure. DXY is currently trading around 99.70 and consolidating just above the 99.50 support area, but the limited rebound suggests that selling pressure remains dominant. A sustained recovery above 100.20 would be needed to ease immediate downside risks, while failure to hold above 99.50 could expose the 98.90 support level.

Momentum indicators remain broadly bearish despite showing early signs of stabilization. RSI is holding near 34 and remains below its moving average, indicating weak buying momentum and keeping the index close to oversold territory. Meanwhile, MACD has started to recover from deeply negative levels, with the histogram turning slightly positive and the MACD line attempting to cross above the signal line. This suggests that downside momentum may be easing, although the recovery remains relatively weak and has yet to confirm a meaningful bullish reversal. Overall, the Dollar Index is undergoing a short-term bearish correction after breaking below its medium-term ascending trendline.

Resistance Levels: 100.20, 100.75

Support Levels: 99.50, 98.90

Dow Jones, H4

The Dow Jones Industrial Average (DJI) remains strongly bullish after extending its broader uptrend and reaching a new all-time high near the 54,000 area. Price has broken above the recent consolidation range and surged through the 53,095 Fibonacci level, with the latest rally pushing toward the 0.618 retracement level around 53,825. The index is currently trading near 53,555 after a sharp advance, suggesting that bullish momentum remains intact, although the strong rally may leave price vulnerable to a short-term consolidation or pullback. Immediate support is seen around 53,095, followed by the 52,315 area, while a sustained move above 53,825 could open the door for a further advance toward 54,895 and potentially the 56,260 extension level.

Momentum indicators remain firmly bullish. RSI has climbed above 70 and moved well above its moving average, highlighting strong buying pressure but also signalling that the index has entered overbought territory. Meanwhile, MACD has crossed sharply above the signal line, with the positive histogram expanding and both lines accelerating higher. This confirms strengthening bullish momentum, although the elevated readings suggest that some profit-taking may emerge following the recent surge. Overall, the Dow Jones remains in a strong bullish trend, supported by the breakout from its recent consolidation structure and the move to a new all-time high.

Resistance Levels: 54,895.00, 56,260.00

Support Levels: 53,830.00, 53,070.00

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