Can the Dow Jones Hold on to the Historical Level it Reached?


The market witnessed a few aha moments, but the bigger question is whether it can sustain the gains it made.

Although the Dow Jones touched the historical figure of 30,000, it couldn’t hold its position despite Pfizer’s vaccine news fuelling optimism. It crashed to 29,529 and then to 29,221 as Friday’s closing price. A continued bearish trend would take it even further down to 28,938. On the other hand, if the market gains strength, it may rise back to 29,600.

Setting a week-long winning streak, the GBPUSD made gains and reached 1.3298 following optimistic views on Brexit and COVID vaccines. However, whether the pair can hold on to the gains remains to be seen in light of rising COVID cases.
The EURUSD pretty much settled back to where it had started the week, respecting the 1.1815-1.1890 range. The pair lost around 15 pips on Friday to finish more or less at its Monday starting level, indicating an indecisive market.
With the month entering its last week, all eyes are on the Purchase Manager’s Index data, especially for the EUR and GBP.

Regarding EUR, as against 50 of previous month, the expectation for the current month is 46. If the actuals are below 46, then it is bearish for Euro. On the other hand, it is bullish for Euro if it goes above the 46 mark.
Regarding GBP, PMI data expected is 42.5. If the actual is less than that, the data is bearish to pound and if more, then the data is bullish to pound.

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