It has been a quiet day for any news or announcements that can calm the volatility of the markets.
Yesterday, Trump commented on progress in the US-China trade talks.
“China and the United States are working well together on trade, but past negotiations have been so one-sided in favour of China, for so many years, that it is hard for them to make a deal that benefits both countries. But be cool, it will all work out!”. Trump tweeted.
The Euro pushed higher after the speech from ECB’s Francois Villeroy de Galhau (Bank of France) referring that the Euro area’s economic retracement is temporary and that accelerating inflation will resume over the coming months. Also weighing on the USD due to statements from FED’s Loretta Mester is that the jump in March may not persevere.
Tomorrow, all eyes will be on the Australian Wage Price Index which its forecast for 0.6%, and the speech of ECB President Draghi & SNB Chairman Jordan.
On the daily chart, the price has bounced from the lower trend line from the high of 2017.
The price is near the key resistance of 94.15 which bounced with a pin bar.
A bat harmonic pattern boosts the continuation of the bearish momentum.
Divergent on RSI assured this possible downfall.
If the price could break beneath the key support level 92.6, it may reach 91.1 again.
On the daily chart, we can see that the price bounced from the support area of 80.35-81.2.
A well-noticed head & shoulders reversal pattern is shaped. The price is at the second shoulder and is breaking the lower trend line as shown.
Followed by oversold on RSI and the breaking of the lower trend line, the price is expected to get back up again to the resistance area 84-84.35.
The price is located at a very strong short-selling area, rebounding from the descending trend line from the high of 2018, which is the same level of 50% Fibonacci.
Besides the broken uptrend line from the low of 2011. Also reaching the top edge of the upward channel along with forming an AB=CD harmonic pattern with divergence on RSI. We will wait for a break beneath the upward channel to go short to our target 108.1 then 104.8.