Further to our previous article concerning the United Auto Workers strike, the union may extend its strike action. UAW President Shawn Fain is set to address union members tomorrow morning at 10am ET and may set new strike targets if negotiations continue to stall.
The union has set a deadline of 12pm ET tomorrow (Friday, 29 September) to reach agreements with the automakers.
Since the strike began on 15 September, FXCM's US Automobile basket has fallen over 6%. US.AUTO now finds itself trading in its bearish channel between the lower blue and red bands. Moreover, the baskets daily RSI has dropped below 50 (green rectangle), which is the bearish side of the indicator. The longer the RSI remains below 50, the more price pressure the US automobile basket is likely to be under.
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.