US30 Trades with Caution Following Last Week’s Recovery
US30
Markets are on edge as recent negotiations between Russia and Ukraine have managed to create hopes for a peaceful solution, but there has not been any major breakthrough, as the war has entered its 26th day.
On Sunday, Ukrainian President Zelenskyy said that if negotiation efforts fail "that would mean that this is a third World War" in an interview with CNN's Fareed Zakaria. He also repeated that he is ready to meet his Russian President Putin. [1]
Last week the US Federal Reserve had started its rate hiking cycle, with an aggressive tightening path ahead, as official project roughly six more hikes this year, with the median projection now standing at 1.9%. [2]
The US stock market was not spooked by the Fed's hawkish actions, as those had been well telegraphed, with the US30 completing its best week of the year. More to it, it managed to move to profitable territory this month, after the poor start of the year, closing well above its 200Days and 200H4s EMAs.
This brings the daily Ichimokou Cloud in its crosshairs (35,000-35,100), above which it will be able to look towards last month's high (35,870), although it is probably early for that.
Despite last week's significant progress, the index starts the new one on the back foot, and the Relatve Strength Index (RSI) points to overbought levels. This keeps risk for a retreat to the EMA200 alive (34,00-34,050), but a catalyst would be needed for daily closes below it, that would shift bias back to the downside and could expose it to 33,152.
Today's economic calendar is rather light, but markets await Fed Chair Powell, who is on tap at 16:00 GMT.
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.
References
| Retrieved 21 Mar 2022 https://www.youtube.com/watch | |
| Retrieved 19 Apr 2026 https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20220316.pdf |
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