- During my daily analysis of the Dow Jones 30, the first thing I noticed is that although we did pull back, the buyers came back again during the early hours in the European session to move the market higher via the electronic markets.
- All things being equal, this is a market that’s been in a major uptrend for some time, and the last couple of days have been so bullish that we have just about wiped out most of the pullback that occurred once we hit the crucial 44,400 level above.
Top Forex Brokers
Technical Analysis
The technical analysis for this pair is of course very bullish, but we also have to keep in mind that the 43,300 level is a significant support level for short-term traders, as it had been a swing high previously. In general, I think this is a market that continues to see a lot of volatility, but over the longer term, it opens up the possibility of a move to the upside. If we can break above the 44,400 level, then it should kick off the next “FOMO trading” as the market will rush higher.
It is probably worth noting that after the US election, we had a massive candlestick form, suggesting that a lot of money came flying into the market as the US administration that is coming into power in January will be much more business friendly, and therefore it makes a certain amount of sense that the US indices will continue to go higher. Ultimately, I do expect to see a lot of volatility and choppiness, but at the end of the day, the market is likely to continue to see a lot of buying pressure.
With all of this being said, I have no interest in shorting this market, and I think that short-term pullbacks will offer value that a lot of people would be willing to jump in and take advantage of lower pricing. In fact, there’s really nothing out there that tells me this market should be shorted, so you must remain bullish from everything that I see on the chart.
Ready to trade the daily forex analysis? We’ve made a list of the best online CFD trading brokers worth trading with.