The chart on the left shows the daily time frame for FXCM's Dow Jones Industrial Average CFD, US30. Here, the index is between the lower blue and red bands in its bearish area. Moreover, the chart shows heikin ashi candles, which are trend following. The current candle is blue, indicating a potentially exploitable rally in weakness. To this end, the right-hand hourly chart is interesting. The hourly EMAs and stochastic have crossed bearishly (black ellipses).
If the EMAs develop angle and separation to the downside, and the stochastic reaches its lower quintile (blue arrow), downside momentum will increase. The adverse action follows disappointing results from Amazon (AMZN.us) and Apple (AAPL.us). In addition, the core PCE index is due to be released at 12:30 PM (GMT). This print can affect sentiment given the Fed's concern over inflation and the quarterly contraction of -1.4% q/q (a 1.1% q/q expansion was forecast).
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.