Pre-cash open, the US30 hourly chart is bullish, as market participants return after observing the Juneteenth National Independence Day. The EMAs are moving in a north-easterly direction. Moreover, the stochastic is above 80, which is its bullish region. Therefore, momentum will support the hourly price if it holds this level (green rectangle). Comments from President Biden that a US recession wasn't "inevitable" are helping foster a risk-on sentiment. However, we are still cautious regarding short-term chart strength.
This vigilance is because the short-term charts are beholden to long-term trends. Above, the daily US30 remains in its weak zone, between its lower blue and red bands. Its momentum also is biased to the downside - the oscillator remains below 20 (red rectangle). As long as the conditions persist, strength in the lower time frames is fragile and remains a target for short-selling at resistance levels.
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.