The US30 is up in pre-cash open trade after the Fed's minutes confirmed 50bps hikes for June and July. I.e. there has been no increased hawkishness than previously communicated.
The minutes also write that the Fed is "well positioned later this year to assess the effects of policy firming and the extent to which economic developments warranted policy adjustments." I.e. rate hikes going forward may proceed slower than initially thought.
Over the last two trading sessions, the daily US30 chart has moved from its weak area into the neutral zone between the blue bands. For the positivity to continue, the hourly chart must comply. In this regard:
1. the hourly EMAs should remain constructive with angle and separation (black ellipse); and
2. the hourly stochastic needs to sustain above 80 and hold these levels (blue arrow).
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.