The US30 index is having a stellar start to the New Year. Since it closed 2017 around 24700.00 it has gotten to the 25150.00 in a few short days. This highlights the strength of the current bullish leg higher. Bears have been swept aside and the index has created new all-time highs on the back of the Tax Reform Bill and positive economic indicators. As we are in new territory, it can be hard to predict areas of resistance overhead. However, today Non-farm Payrolls data will be released which can give extra momentum to this rally, but if the numbers disappoint or are perceived to be bearish then it can sap the bullish strength.
Support can be found at 25000.00 and 25091.10. These levels can find buyers if there is a gentle retracement from the highs. The levels are untested as support so their strength is unknown, but it is likely dip buyers will step in. Thus, the safest course of action for those who have been unable to take part in this rally is to wait for a pullback in price and position themselves for the next leg higher to be confirmed. Stronger support can be found at 24876.70 and 24675.00.
This pair has been channelling higher this week, continuing the trend from the end of 2017. Price has broken out of the channel on a couple of occasions but has maintained its grind higher nonetheless. After the miss on Australian Trade Balance this morning the price dropped back from the channel top and is now close to the channel bottom, around 0.78370. Resistance overhead comes in at 0.78566 and the high of 0.78690 should the channel bottom hold and prices continue higher.
If the channel bottom fails then the price can fall to attack the next supporting trend line at 0.78241 from the 4-hour chart. Below here lies the 0.78042 support ahead of 0.78000. There is stronger support again at 0.77771 and 0.77606, which are both previous lows on the move higher.