Startling satellite imagery shows a massive convoy of Russian military vehicles advancing towards Kyiv. The convoy is estimated to be 65 km long. The images are from Sunday or Monday, and given how fast things are changing on the ground, the convoy shape may have altered. Nevertheless, there is growing concern that Russia is preparing to launch a full-scale assault on the Ukrainian capital. Other satellite images suggest a military buildup along Southern Belarus' border with Ukraine by Russian forces. Risk-off has dominated the morning European session, given the new signs of escalation.
The chart on the left is the daily heikin ashi (HA) chart of FXCM's CFD of the DAX, GER30. The HA is a trend following indicator; it is red indicating bearishness, and is in the weak area between the lower blue and red bands. The red Bollinger bands moved in opposite directions as volatility increased (black ellipses). However, the upper band has turned down (black rectangle). This directional change is a bearish development. The righthand chart is the hourly GER30. Its trend following indicators have crossed bearishly (turquoise ellipse), and its stochastic is making its way towards the lower quintile (arrow). The longer it stays below 20, the greater the likelihood that the index feels pressure to the downside.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.