On the daily chart below, we can see that after breaking the key support level for the Dow Jones at 32684 following the stress in the banking sector, the sellers took control. The market is now consolidating a bit around the support at 31638. The moving averages are crossed to the downside and the sellers keep leaning on them maintaining the downtrend intact.
Tonight we got another emergency action from the Fed as it enhanced the provision of US Dollar liquidity via swap lines with other major central banks. This weighed on the risk sentiment as futures opened and sold off non-stop during the APAC session.
On the 4 hour chart below, we can see that we have another range here as the uncertainty dominates nowadays. We have the FOMC interest rates decision on Wednesday and this may keep the sellers in control without further good news to lift the sentiment. It looks like whatever the Fed does, the market may still trend downwards as a weak action would mean that the crisis is serious and a strong action would pressure the market even more.
In the 1 hour chart below, we can see the range created with the support at 31675 and the resistance at 32555. If the sellers want to position short into the FOMC meeting and the breakout, then the trendline and the moving averages can be a good place to lean on. If the buyers manage to break above the trendline, then we may see another rally towards the top of the range.
