US30 trades bearishly following Friday’s decline
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The US30 trades between the lower blue and red bands in its bear channel. Friday's price action shows a long red candle, with the index dropping 3%. This decline was after Fed Chair Powell's hawkish comments at Jackson Hole. He said the fight against inflation would continue, acknowledging it would be painful. Nevertheless, the Fed aims to return inflation to an average of 2%. Powell's comments suggest a potential 75bps hike in September is a strong possibility.
Higher rates suggest a lower discount factor. Thus, the longer the US30 remains in the bearish zone, the greater the likelihood of continued pressure on the index.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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