Today's US30 note is similar to yesterday's. I.e. FXCM's daily Dow Jones Industrial Average CFD (US30) is in the bullish area between the upper blue and red bands (left). The right-hand chart is its hourly timeframe. To capitalise on the daily position, short-term traders need to bid price so that the hourly trend-following indicators and stochastic cross positively (black ellipses). The EMAs will then need to develop angle and separation, and the stochastic move into the 80+ area (blue arrow), to indicate an underlying bullish momentum. We suggest caution, as headwinds are growing regarding risk assets. If the stochastic falls into the 20- areas (red rectangle), shorts may be targeting the recent rally.
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.