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Dow drops while EUR/JPY probes support and natural gas remains sidelined
Dow drops while EUR/JPY probes support and natural gas remains sidelined amid heightened tensions in the Middle East.
Dow to drop on Israeli missile strike
Having briefly traded in 4-month highs at 43,115, the Dow Jones Industrial Average is expected to fall below its 200-day simple moving average (SMA) at 42,497 amid heightened geopolitical tensions in the Middle East.
Support below the 5 June low at 42,212 can be spotted around the late May low at 41,828 and the 15 May low at 41,778.
Critical support is the 23 May low at 41,354, a fall through which may lead to a much deeper correction taking place.
Minor resistance is seen along the 200-day SMA at 42,497 and at Thursday's 42,606 low.
EUR/JPY tests support zone
EUR/JPY's advance has taken it to ¥166.74, to within inches of its ¥166.69 October 2024 peak which capped.
The previous major resistance area, now because of inverse polarity a support zone, at ¥165.21-to-¥164.17 is being tested but is expected to hold.
A rise above the ¥166.69-to-¥166.74 resistance area would likely engage the June 2024 low at ¥167.53.
Natural gas futures remain sidelined
The recent advance in US natural gas futures prices stalled between the late March low and May highs at 321.4-to-327.5, at 327.2, before it gave way to a sell-off to the 55-day SMA at 300.0. Further range trading around it is on the cards.
Support may be found between the late May and current June lows at 295.7-to-294.4. A fall through this area would likely engage the April-to-June uptrend line at 289.9 and the 200-day SMA at 286.5.
A rise above Thursday's 311.7 high may lead to the 321.4-to-327.5 being back in the picture.
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