Trading plan for 04/04/2018

The US has announced a list of goods imported from China, which will be subject to new duties, which guarantees Beijing's response, but the markets are still approaching exchange with calmness. Actually, NZD and AUD are getting the most out of it today. The stock market is more or less a plus, crude oil is slightly lower after the mixed overtones of API.

On Wednesday 4th of April, the event calendar is quite busy with important data release. The most important news will be ADP report form the US, but the market participants should keep an eye on Construction PMI data from the UK and Unemployment Rate form the Eurozone.

EUR/USD analysis for 04/04/2018:

The US decided to impose a 25-percent duty on about 1300 products from China, for which he has allegations of unfair practices related to the use of intellectual property and technology from the USA. The publication was discussed earlier, so it was no more a surprise. China announced a press conference in the morning.

The US job market report in form of ADP Non-Farm Employment Change data is the key fundamental event today. The market participants expect a drop from 235k last time to 208k, so any number bigger than this will be a positive surprise for markets and might strengthen the US Dollar across the board.

Let's now take a look at the EUR/USD technical picture at the H4 timeframe before the news is released. The market has dropped slightly below the technical support at the level of 1.2282, tested it from below and now it might be ready to head towards the next technical support at the level of 1.2238. The momentum indicator is still below its fifty level and currently, it points to the downside despite the oversold market conditions, which confirms the bearish bias.

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The material has been provided by InstaForex Company - www.instaforex.com