Trading plan for 24/08/2018
On Friday, the 24th of August, the event calendar is light in important data releases. Overnight, the National CPI data from Japan were released and it missed the expectations (0.9% vs. 1.0% expected). The market participants are waiting for German 2 quarter GDP release and Durable Goods Orders from the US. There is a speech scheduled from Federal Reserve Chairman Jerome Powell at the end of the day.
EUR/USD analysis for 24/08/2018:
The White House administration has published a statement regarding trade with China. According to the US, governments around the world are beginning to realize the fact that the Chinese do not strive for partnership on the level of trade with other countries, but only their dominance.
The United States will continue to oppose China on unequal terms of trade. The statement appeared by surprise. Earlier, people talked about calming the tension between countries. China stated that they had a constructive conversation about trade with the US. The White House also confirmed the progress in conducting negotiations.
Let’s now take a look at the EUR/USD technical picture at the H4 time frame. The market has bounced a little from the technical support at the level of 1.1529, but it is worth to notice, that trading is still being made in overbought market conditions. The nearest technical resistance is seen at the level of 1.1627 and any violation of this level would lead to another spike towards the level of 1.1746. On the other hand, the technical supports are seen at the levels of 1.1506, 1.1480 and 1.1445.