FXCM's dollar basket is trading in its bullish channel between the upper blue and red bands (left). This is in the daily timeframe. Its stochastic is trading above 80 (green rectangle). This denotes a strong underlying upwards momentum.
The hourly chart (right) pulled back to the 38.23% Fibonacci retracement level of the previous impulse move up. Dollar bulls seem eager to come back into the market at this level. The trend-following EMAs and momentum-based stochastic have crossed up (black ellipses). This is bullish. If the hourly stochastic makes its way to the 80+ levels and holds (blue arrow), an upswing is likely to be underway, with the short-term traders aligning themselves with the daily participants.
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.