The Dow Jones ended the day positively last Friday, following the US NFP report, surpassing expectations and indicating a resilient labor market with minimal inflationary pressure. The focus now shifts to the upcoming US CPI data, which could potentially impact the Fed’s strategy and delay rate cuts.

Examining the daily chart, the Dow Jones has been trading within a rising channel, displaying divergence with the MACD, signaling potential weakening momentum and potential pullbacks or reversals. The recent breakout has opened the possibility of a correction into the 37128 level, with the price bouncing off the first support level at 38464. However, the upcoming US CPI data will determine whether this bounce was temporary or indicative of a reversal.

On the 4-hour chart, the recent breakout and bounce around the 38464 support level are observed. The price, appearing overstretched around the support, may undergo a pullback into the moving average or consolidation before the next move.

Further analysis on the 1-hour chart reveals a downward trendline, confluence with the red 21 moving average, and Fibonacci retracement levels. This setup anticipates potential seller intervention, with defined risk positioned for a break below the 38464 support. Conversely, buyers will seek a price increase to invalidate the bearish setup and drive bullish bets towards a new all-time high.

Looking ahead, the main highlight for the week is the US CPI report, expected to influence the Fed’s decision on potential rate cuts. Additionally, the US PPI and latest US Jobless Claims figures are scheduled for Thursday, followed by the University of Michigan Consumer Sentiment survey on Friday.