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By: Ahura Chalki
Trump’s response to Powell
Threats to new tariffs at the time of negotiations, especially when it is for very first face to face negotiation after a long time, even if it was shocking to Chinese to tell them what going to happen at the beginning of September, in case of no trade deal, also was a shock to the markets to bring a USD rate lower, where it supposed to be, as he and his administration want to be. FED rate cut of 25bp and hawkish policies, did not meet the expectations of the government, so it seems that new tariffs since it is not immediately and just something for a month later from now, we can read that as Trump’s response to Powell. (US President Donald Trump has said he will impose a fresh 10% tariff on another $300bn (£247bn) of Chinese goods, in a sharp escalation of a trade war between the two countries. BBC News)
From the technical side, price is back above EMA50 and moving between middle and upper wings of Bollinger Bands as signals of more bullish, while MACD’s histogram getting closer to 0-level, where RSI line also getting closer to 50-level, as a bearish signal, in case of crossing these to levels.
Pivot point: 1433.71
Resistance levels: 1467.12 / 1479.24
Support levels: 1421.60 / 1388.18
The expected trading range for today is between 1421.60 support and 1467.12 resistance.
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