Weekly outlook: Trump save the dollar for the moment.
The price finish the first day of the week wih an strong bullish canddle, touching the lower part of the channel, as we said the last week, the short position remind in the mid term or for the next week, but in the short term we can expect more upside movement.
What to take on considerations:
In the fundamental side:
The weekend meeting between Trump and Xi give hope to the market to put end the trade war between US and China, this hope translated in a strong dollar. But we need to rethink the market reaction to the negotiation resume, both countries had already harm each other with tariffs, that the global economy will feel it and the Federal Reserve will take in account, as well is going to take account the coming data of production and consumption of US and will give the enough reason to cut the interest rate, remember the last week weak consumer confidence on US hitting its lowest level since September 2017.
So, this bullish strong movement on the dollar price was just an euphoria momentum.
In the technical side:
The price is in the drawn line, as we expected last week, so lets see the behavior of the price in this area and try to figure out with the coming week new information if we can take short movement once again or just wait for a bigger retracement process, because as we can see the price seem that has formed a 1-5 wave cycle in a lowe timeframe, so we can expect consolidation or a sharp retracement befores the price hit a lower price.
What to take on considerations:
In the fundamental side:
The weekend meeting between Trump and Xi give hope to the market to put end the trade war between US and China, this hope translated in a strong dollar. But we need to rethink the market reaction to the negotiation resume, both countries had already harm each other with tariffs, that the global economy will feel it and the Federal Reserve will take in account, as well is going to take account the coming data of production and consumption of US and will give the enough reason to cut the interest rate, remember the last week weak consumer confidence on US hitting its lowest level since September 2017.
So, this bullish strong movement on the dollar price was just an euphoria momentum.
In the technical side:
The price is in the drawn line, as we expected last week, so lets see the behavior of the price in this area and try to figure out with the coming week new information if we can take short movement once again or just wait for a bigger retracement process, because as we can see the price seem that has formed a 1-5 wave cycle in a lowe timeframe, so we can expect consolidation or a sharp retracement befores the price hit a lower price.
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