US30 Pressured After Solid Weekly Start
US30 - H4
Increasingly hawkish Fed and the break of the Omicron variant have been the key factors of the instrument's four-week decline, which was its longest losing streak in more than a year.
The current week started with a relief rally that covered more than half of the aforementioned decline, but optimism around the Omicron variant was dented, after UK's tougher measures [1] and Dr Tedros' warning that Omicron "could have a major impact on the course of the pandemic" [2].
Another factor that dampens sentiment today, is renewed fear around China's property market, after Fitch downgraded Evergrande and Kaisa to Restricted Default. [3], [4]
US30 has been facing difficulties since yesterday, which create increased risk for a breach of the 35,420-35,380 key area, where the EMA200 and the upper border of the Daily Ichimoku are located.
This region has the ability to provide support, but closes below it can open the door for a deeper slide towards and below the ascending trend-line from this month's low (at around 34,985-34,850).
As long as it stays above its EMA200 and Ichimoku Cloud, the Index can set new monthly highs (35,937), that will allow it to look towards its record highs (36,570).
Caution is still needed as volatility and uncertainty around Omicron remain high, while from the economic calendar, market participants await US Jobless Claims, before they turn to US CPI Inflation on Friday.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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