US30 hourly battles overhead resistance pre-cash open
The chart on the left shows the daily timeframe for FXCM's Dow Jones Industrial Average CFD, the US30. It remains between the lower blue and red bands in its weak area. However, it is on a border and is threatening to move into the neutral zone between the two blue bands. It will be regarded as a sign of relative strength if it can. The chart on the right shows the US30's hourly time frame. Pre-cash open, the shorter-term chart is battling to overcome immediate overhead resistance at the central pivot, P. If it cannot overcome this critical level, and the EMAs develop angle and separation to the downside, the US30 will be under pressure. This weakness worsens if the stochastic falls below 20 (red rectangle), as this would suggest that an underlying bearish momentum is developing.
Russell Shor
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.
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