3 Indices Rally Ahead of the Dow Jones industrial Average. What to do Next?

In today’s GCI Market Outlook, let’s take a look at Forex Trading on USDCHF, NZDUSD, AUDUSD, the Russell2000, the S&P500 and the Dow Jones Industrial Average.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

In our last video, I showed you how some indices and currency pairs lag behind others and what we can do about it.

Well, it happened again yesterday with the DJIA lagging behind rallies on the NASDAQ and the S&P500.

You can see the time period here on the charts where the Dow Jones flat-lined.

Not long later, we can see how price action equalized and the correct position was obvious at the time.

In fact, investors were so encouraged that they drove it to new record highs.

From the technical point of view, we see price action forming an ascending triangle, the stochastic oscillator is overbought but undecided, and MACD is heading into bullish territory on the 4-hour chart.

You will also have noted that the Russell 2000 is outperforming most other indices.

There are many reasons for this, but investors may be risk-on with smaller companies in the US as they will benefit more if the SCOTUS rules against the Trump tariffs.

Watch the news.

Speaking of news, the annual Davos World Economic Forum starts on Monday, and this event always moves the market, speech by speech, question by question.

As we know, the US Federal Reserve is not inclined to lower interest rates any time soon, and, combined with the pending SCOTUS ruling, USD is getting stronger.

Let’s watch for a pullback on price action in USDCHF and its stochastic oscillator.

Watch the upper trendline in NZDUSD along with the technicals.

We also have a ragged range trading opportunity on AUDUSD, and price action is forming a double top on the one-hour chart.

You will note that I like to use Workspaces in cTrader to keep track of groups of instruments.

To set these up, just click on the icon, select Save Current Workspace, and give your new workspace a name.

Now, select the Symbols you want to occupy the new Workspace.

You may now use this workspace on any browser anywhere in the world, as long as you log in using the same cTrader ID.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.