Home Forex Forex Market Analysis Daily Market Update: Trade War Still on Fire

Daily Market Update: Trade War Still on Fire

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 News Commentary


 

“The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one-way street”.

With this tweet, Trump started the markets by denting investor risk appetites and drove down the U.S. yields.

 

The Yen and Swiss Franc were the highest gainers in the Asian session.

 


Chart Analysis


 

USD INDEX

As we expected on the daily chart, the price had reached the key resistance at 95.5 and bounced back from it, powered by divergence on RSI & the B wave (Elliot waves).

So, the index is supposed to get back down again to the support zone of 93.2-92.6, then start its journey to the C wave.


 

USD/JPY

On the daily chart, as we expected, the pair had broken the ascending channel followed by bouncing from the descending trend from the high of 2017 and the key resistance of 111.1.

The price also broke the support of 110.05 to reach the next support 108.15, to then get back up again from this level to retest the level at 110.05.

As you can see on the chart, the price is moving according to Elliot waves. By forming the A & B waves, we are waiting for the next move down to hit the C level which is located at the support of 106 and also to meet the ascending trend from the low of 2016.

So, a bounce has started and on its way.


 

USD/CAD

As we expected before, the price has reached the key resistance level of 1.334.

As we can see the price is located at very strong selling area according to many factors including key resistance level, 78.6% Fibonacci, the upper level of the reversal wedge, forming the Gartley harmonic pattern, and overbought in RSI.

So, any bounce there will lead the price down to the support zone at 1.309-1.299.


 

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