The U.S. dollar was lower against other currencies on Monday, as trade tensions put expectations for a Federal Reserve rate hike in September under pressure.
trade tensions with China continued, as U.S. President Donald Trump warned he would impose tariffs on $267 billion worth of Chinese imports, on top of an earlier promise of tariffs on $200 billion worth of Chinese goods.
China’s foreign ministry said on Monday that it would “respond to any news steps on trade”.
“If the U.S. side obstinately clings to its course and takes any new tariff measures against China, then the Chinese side will inevitably take countermeasures to resolutely protect our legitimate rights,” Foreign Ministry spokesman Geng Shuang said.
The US index was down despite Friday’s upbeat jobs report increasing expectations of a fed rate hike in at its next meeting September 25-26.
US non farm payrolls were close to expectations but the market is entirely focused on wages and the report showed hourly wages up 0.4% higher than 0.2% expected.
It was a different story in Canada where employment fell to 51.6K jobs compared to +5.0K expected. Hourly wages there also fell to 2.6% compared to 3.0% previously and 3.5% two months ago
The British economy posted the fastest expansion in nearly a year as the services sector remained powerful in the three months through July. Growth beat economist estimates to come at 0.6 & with construction output and retail also providing an enhancement. Separate figures showed the trade deficit in goods narrowed to a five-month low of 9.97 billion pounds ($13 billion) in July.
On the daily chart, we can see that the price had a bearish rally for the past six weeks until it reached the key support zone of 11900.8-11742.4
It’s also the lower side of the descending channel along with 88.6% Fibonacci
The price is technically expected to have its way up back again to the key resistance level 12582.46 which is the top of descending channel and the broken ascending trend
On the daily chart, the price is moving sideways between the support area 66.2-64.15 and the resistance area 74.45-72.45
After breaking the ascending trend, the price turned back to this support zone with bounce from an ascending trend as shown
The price now is retesting this zone with price action “pin bar”, to have a bullish movement again
So, it’s expected to go up to the resistance zone of 72.45-74.45
On the daily chart, the pair is facing a punch of resistance levels
Firstly the key resistance 116, secondly the weekly descending line from the high of 2015, third the up side of the ascending channel which is considered as a flag, and finally the overbought on RSI
So, the piece is expected to turn back down to the support 112.8
On the daily chart, the pair is facing a punch of support levels
Firstly the key support zone 72.65-72.35, secondly the down side of the descending channel, third the AB=CD harmonic pattern, forth the double bottom reversal pattern, and finally the divergence on RSI
So, the price is supposed to get back up again to the resistance 74.01