Trading plan for 10/04/2018

The sentiment on the financial markets improves after comments from the US and China downplayed the risk of a trade war. Calming comments were perceived as supporting the risk appetite, which for the Asian session means a rally of currencies from the Antipodes at the yen's depreciation. AUD / USD has been raised to 0.7730, and NZD / USD has jumped to 0.7330. USD / JPY rebounded from 106.60 to 107.15.

On Tuesday 10th of April, the event calendar is light in important data releases, but the global investors should keep an eye on Italian and French Industrial Production data, MPC Member Haldane Speech, Building Permits, and Housing Starts data from Canada and US PPI Index data.

SP500 analysis for 10/04/2018:

The impulse to improve moods was the speech of President Xi, who at the Boao forum appealed for a multilateral trading system and added that only dialogue is a way of resolving disputes. Earlier in the night, US Treasury secretary Mnuchin downplayed the risk of launching a trade war as well. This data allowed the global stocks to perform relief rally and all major global indices close positive.

Let's now take a look at the SP500 technical picture at the H4 time frame. The recent rally has hit the technical resistance at the level of 264.70 and then the price was capped, so despite this advance, the bulls are still struggling to break through the level of 266.81 and fill the gap between the levels of 268.89 - 270.30. Only this kind of market behavior will allow the bulls to extend the rally higher towards the level of 273.42. Otherwise, sooner or later, the level of 254.64 will be tested again.

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