Major Wall Street indices erased most of the early gains, the benchmark 10-year Treasury yield jumped above 4.20% and the dollar strengthened slightly following fresh comments from FED Harker. According to his opinion inflation will be around 4% next year and should fall to 2.5% in 2024. Harker said that FED will keep raising rates for a while and only a sustained drop in inflation will change policy outlook. Central bank has made disappointing progress at lower inflation and will actively try to slow the economy to curtail price pressures.
US30 pulled back to major support at 30580 pts, which is marked with 23.6% Fibonacci retracement of the last downward wave. If bulls manage to regain momentum, another upward move may be launched towards next resistance at 31760 pts. On the other hand, breaking below the aforementioned zone, may trigger a bigger downward move. In such a scenario the nearest support to watch lies at 28660 pts, where the lower limit of local 1:1 structure (blue rectangle) is located. Source: xStation5
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