Published: 28 November 2025,08:02
Daily Market Analysis New
*The rally is fueled by growing anticipation of imminent Fed easing and seasonal year-end positioning, boosting risk appetite across technology, financials, and other cyclical sectors.
*The DXY has posted its steepest weekly decline in months, enhancing the attractiveness of non-USD assets and encouraging capital rotation into higher-beta markets and emerging markets.
Equities particularly across Asia have extended their rally in recent sessions, supported by strengthening expectations of imminent Federal Reserve rate cuts and the usual bout of year-end positioning. Investors are increasingly leaning into the view that lower borrowing costs will bolster global growth prospects, improve corporate earnings visibility, and revive risk appetite across sectors ranging from technology to financials. This shift toward a more accommodative macro backdrop has amplified the broader risk-on mood, with regional markets responding positively to both improving liquidity conditions and reduced recession fears.
At the same time, the U.S. Dollar Index (DXY) continues to weaken, recently posting its steepest weekly slide in months. A softer dollar enhances the attractiveness of non-USD assets including Asian equities and commodities by lowering hedging costs and improving relative valuations for international investors. The weaker USD trend, combined with easing U.S. yields, has encouraged capital rotation out of defensive plays and into higher-beta markets, with emerging markets in particular benefitting from renewed foreign inflows.
Still, the rally is not without caution flags. Valuations in tech and growth-heavy sectors remain stretched, with parts of the market already pricing in a best-case scenario for monetary easing. Any upside surprises in U.S. economic data whether inflation, labor market, or consumer spending could force a hawkish repricing and quickly cool sentiment. Furthermore, geopolitical risks remain a persistent overhang: uncertainty surrounding Russia–Ukraine negotiations, Middle East tensions, and U.S.–China trade dynamics all carry the potential to disrupt risk appetite abruptly.
With the dollar losing momentum and global risk sentiment firming, equities and emerging-market assets are positioned to continue attracting flows in the near term. However, markets are likely to remain highly reactive to data and headlines. Key catalysts such as upcoming U.S. inflation releases, labor market indicators, and any shifts in geopolitical stability will determine whether this rally gains further traction or slips back into a more cautious, data-dependent phase.
The Dow Jones continues to trade within a steady upward structure on the chart, supported by a well-defined ascending trendline that has guided prices higher since late summer. After pulling back from the resistance region near 48,000, the index found support around the 0.618 Fibonacci retracement of its latest leg and has since rebounded firmly back toward the same resistance zone. This rebound reflects the broader resilience of the uptrend, although the market now faces a critical test as it approaches the previous swing high, where sellers have repeatedly capped gains. The structure suggests growing bullish momentum, but the lack of a clean breakout above 48,000 keeps the outlook cautiously constructive rather than decisively bullish.
Momentum readings support the view of improving strength. The RSI has recovered from mid-range levels and is now pushing back toward 60, signaling that buyers are regaining control after the recent corrective phase. Meanwhile, the MACD has turned upward with a fresh bullish crossover, accompanied by rising histogram bars, indicating an acceleration in positive momentum as the index attempts to reclaim higher ground.
Resistance level: 48,000.00, 49,090.00
Support level: 46,420.00, 44,325.00
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
