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Special Trading Outlook: Trading Idea on US30
By Research Team Monday, Apr 15, 2019
- 11.00am ISTD1
A break-through rally can be noticed in U.S markets as market sentiments strengthened after bond yields rises after sliding to two-year lows last week. Most recently, the U.S released its inflation data showing an improvement by 0.6% much higher than the previous figure 0.1% & better than expected result of U.S Non-farm Payroll data indicates a progress in labor sector. These factors widely contributed an upside in US30. The FOMC Meeting Minutes hinted a tightening approach of cutting down the interest rate rather than raising it in the upcoming meetings & the ECB left an interest rate steady at 0.00% same as expected with hinting a rate hike in 2020. Earlier, the International Monetary Fund (IMF) reduced its global growth forecasts from 3.5% to 3.3% due to economic slow-down which pressurized the US30 to some extent. However, the trend in global indices largely depends upon the multiple events like uncertain Brexit outlook, beginning of U.S first quarter earnings season, U.S trade issues with Europe & China & the forthcoming U.S-Japan trade talks in next week. Technically, the US30 moved on higher side after forming a Support 1 & Support 2 levels & sustaining an upside near resistance level of previous highs. Also, the formation of V-shape strategy indicates a strong buying; also, supported by RSI line which is hovering above the mid-level of 50. Hence, a strong buying bias may be established at corrective dips in US30 with a target of 26800 levels on medium to long term basis.