The H8 US30 chart shows a little more granularity than the current daily. This extra detail has allowed up to construct downward sloping parallel lines. i.e. the US30 may be charting a bullish continuation flag pattern after the recent market volatility.
To this end, the hourly chart will be instructive. We are looking to see if the EMAs develop angle and separation to the upside and if the stochastic crosses bullishly (black ellipses). Bullish momentum will be underlying if these signals chart and the stochastic can move and sustain above the 80 levels.
However, we note that the current environment is heavily biased towards risk-off. Therefore, any suggestions to go long are likely to face resistance and caution is advised.
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.