Trading plan for 09/04/2018:

Tensions between the US and China do not disappear, though without much impact on asset prices. The currency market has little excitement at the start of the week. The main crosses hold the ranges of fluctuations from Friday. EUR / USD stuck close to 1.2280, USD / JPY is staying just under 107. Only NZD / USD is growing since the beginning of the session and attacks 0.73. The Asian stock market is growing despite the terrible pronunciation of Friday's session on Wall Street.

On Monday 9th of April, the event calendar is light in important data releases, but the market participants should keep an eye on Halifax HPI data from the UK, Sentix Investor Confidence data from the Eurozone and the Canadain Housing Starts and BOC Business Outlook Survey.

EUR/USD analysis for 09/04/2018:

During the weekend, President Trump wrote on Twitter that he expects China to release its trade barriers, "because this is the right thing to do." But Peter Navarro, director of the Bureau of Trade Policy in the White House, said that although tariffs on China are serious, they are also negotiating tactics.

Friday's speech of Fed chairman J. Powell was consistent with the Fed's previous remittance regarding wages and inflation, so the currency market showed almost no reaction. Powell said the wage growth rate remains moderate, though it has accelerated. He added that inflation should clearly accelerate in the spring. The head of the San Francisco Fed branch, J. Williams, said he sees three or four hikes this year. He added that customs policy "for now" does not pose a greater threat, but open trade wars may have "quite negative repercussions."

Let's take a look at the EUR/USD technical picture at the H4 time frame. The market has broken out of the Falling Wedge pattern, but the rally was stopped at the level of 1.2290 as the momentum indicator is still under the fifty level. In a case of a further breakout, the next technical resistance is seen at the level of 1.2346. and the immediate support is seen at the level of 1.2220.


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