Upcoming TeleTrade Webinar by Marios Athinodorou
Topic: Plan your trading day
Thursday 29/3 at 15:00 (GMT+3)
Sign up here!
US government officials are urging China to offset the tariffs on imported cars. On the other hand, the Chinese Premier of the State Council of the People's Republic of China, Li Keqiang, promised to keep the trade negotiations and give access to US businesses.
The analysts of JPMorgan stated that the recent escalation may have been just a negotiating tactic which may end in a compromise. They added that this would be consistent with the pattern around the steel/aluminium tariffs. This pattern interpretation is promoted by several market commenters.
The currency market reaction was probably intended to urge investors to focus more on Dollar and Yen. This new market sentiment seems to have given a boost to industrial commodities. It is remarkable that copper, iron and ore seem to start gaining momentum.
The technical view on dollar index seems to be bearish. The price appears below the Kumo, the lines Tekan Sen, and Kijun Sen appear to be out of the Kumo too. However, there are some clues which could be interpreted as signs of a potential reversal.
The lines Kijun Sen and Tekan Sen seem to be in a bullish formation, and the Chikou Span appears to be in the price. It could be noticed the potential formation of a triple bottom. In order to be able to spot a potential bullish signal, we could go to the 1H time frame and wait for a confirmed Kumo break out above.
EURUSD
In accordance with the Ichimoku system, this pair seems to be bullish. It could be noticed that the cloud appears to be aggressively up and the price seems to be above the cloud. Nevertheless, we may notice whether the Tekan Sen and Kijun Sen are moving towards a potential bullish formation and if the Chikou Span is out of the price. Moreover, we could go to lower time frames, such as 1H, and wait for a confirmed Kumo break out signal above.
USDJPY
Following the Ichimoku approach, this pair seems to present a downtrend. The cloud seems to be aggressively down, the price appears out of the cloud, the lines Tekan Sen and Kijun Sen seem to be in bear formation, and Chikou Span appears out of the price. It could be noticed that the price is on the Tekan Sen. Moreover, if the Kumo breaks out in the 1H time frame, then we could have a potential bear signal.
About the Author:
Marios Athinodorou is TeleTrade’s market analyst and commentator. Apart from being an experienced trader, Marios is an advanced technical analyst and is interested in trading psychology. He has 7 years of trading expertise in Forex and CFDs, providing insights to share with all kinds of traders, from beginners to experts.
Among other, Marios is delivering weekly trading webinars. Sign up for upcoming webinars, here.
Disclaimer: Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and education purposes. Personal Opinion of the Author does not represent and should not be construed as a statement or an investment advice made by TeleTrade. All Indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
Risk Warning: Investment services are provided by TeleTrade-DJ International Consulting Ltd, a Cyprus Investment Firm under reg. number HE272810 operating in accordance with MiFID, under license 158/11 by the Cyprus Securities and Exchange Commission. Trading in leveraged derivative financial instruments carries a high level of risk and may not be suitable for all investors. Past performance is not a reliable indicator of future results. Indiscriminate reliance on informational or historical materials may lead to losses.