Breaking forecast 04/04/2018
EURUSD: We are waiting for the breakthrough of the range and strong movement.
The focus of markets: the approach of the Trump trade war - China.
On Monday, April 2, China imposed increased duties on 128 goods from the US - worth $3 billion, in response to the introduction of US duties on steel and aluminum from China in early March this year. At the same time, the US is preparing new duties worth $50 billion for Chinese goods - the list should be submitted on Friday, April 6.
China at the same time requires the US to consult - for China the situation is very painful. While the US does not meet halfway. Reason claimed by the US for duties: 1) China's systematic violation of US copyright on technology; 2) The huge trade deficit in the US trade with China - up to 350 billion dollars.
The result of the trade war - a new sharp drop in US indices on Monday, April 2: minus 2.5-3.0% on major indices, important lows are broken.
Currency market:
The EURUSD rate is in the range - and is preparing for an exit.
Fundamentally more likely to go down - a breakthrough of key support 1.2238 and a move to 1.2000.
However, there are explanations for growth: gold and other alternatives to the dollar are growing.
We sell from 1.2238, stop at 1.2283, the profit is 1.2000.
Alternative: buy at breakdown 1.2480, stop at 1.2435, profit at 1.2680.
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