Markets upbeat as Trump unexpectedly takes softer stance on trade

Earlier today, the markets were caught by surprise as US President Trump took a slightly different stance on trade.

Summary of Events:

  • President Trump has reversed sanctions imposed on China’s ZTE pledging to help the technology company get back on its feet.
  • This is ahead of trade talks with China’s Vice Premier Liu He to resolve trade disputes.
  • This could provide an indication that President Trump is willing to soften its stance on trade and perhaps take a more understanding approach to NAFTA. Currently, no new develops there.

I’m currently not in any trades, but here are a few that I am monitoring. First up is EURUSD as we could be seeing a bullish week ahead.

Screen Shot 2018-05-14 at 9.57.20 AM

Over on the weekly timeframe, this pair fell for four consecutive weeks. In the beginning of this week, EURUSD already climbed higher up last week’s open. Admittedly, this is still early to tell whether or not this is a trend change.

Screen Shot 2018-05-14 at 10.15.20 AM

There’s not that many technical levels I am looking at. Instead, this would be a better opportunity to swing trade off of the trend utilizing the moving average divergence as a signal for trend acceleration.

Moving onto AUDUSD, this pair was in a weekly wedge and recently broke lower.

Screen Shot 2018-05-14 at 10.31.32 AM

After hitting the the 0.80535~ price level, this pair has been in nothing but a downtrend. After crossing below the upwards sloping trendline, this pair stalled a bit at a daily level. The next key level would be at 0.7050~ where we expect this pair o encounter another resistance.

Australia’s inflation remains stable at 1.9%. After tonight’s monetary policy, this pair should be able to be approached from a technical standpoint. Tonight’s minutes should take a dovish stance as inflation sits close to target, but trade fears still loom.

Screen Shot 2018-05-14 at 11.09.47 AM

I am in an intra-day trend trade at the moment, but you can also observe the trend change over on the daily timeframe. This happened back in late April when price crossed above the February highs. Similar to the EURUSD pair, I will be looking to take intra-day trend trades on this pair as well.

Finally, USDCHF is recently experiencing a trend reversal that I intend on capitalizing on.

Screen Shot 2018-05-14 at 11.24.07 AM

As you can see, over on the left side, the daily chart shows a monster rally, but price is held resisted at the 1.003~ mark or much yet the 1.0~ mark. Over on the 4-hour on the right, we begin to see this reversal. Any retracement would be an opportunity to enter into intra-day shorts.

Currently, these are the trades I’m watching at the moment. Stay tuned for more.

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