As we can appreciate the price is in the lower part of the channel area next week US-China deal is going to be decisive the break of this area.
What to take on considerations:
In the fundamental side: The US-China trade deal had get cold, with no deal yet the price makes huge movement to upside. The friday lower than expected CPI report hadn´t be relevant to the market apparently but the odds to a cut rates are increasing according CME fedwatch tool, on friday the chance were higher to a cut rate at the year end to keep it unchanged. For the coming week the market will still tracking the situation on the negotiation.
In the technical side: The price is in the lower part of the channel, the price already formed the AB of the flat extended retracement ABC. If it breaks the C could be rounded in the area of the 38.2 and 50 fibo retracement of the previous trend.
ources:
www.cnbc.com/2019/05/10/what-to-...
www.cmegroup.com/trading/interes...
What to take on considerations:
In the fundamental side: The US-China trade deal had get cold, with no deal yet the price makes huge movement to upside. The friday lower than expected CPI report hadn´t be relevant to the market apparently but the odds to a cut rates are increasing according CME fedwatch tool, on friday the chance were higher to a cut rate at the year end to keep it unchanged. For the coming week the market will still tracking the situation on the negotiation.
In the technical side: The price is in the lower part of the channel, the price already formed the AB of the flat extended retracement ABC. If it breaks the C could be rounded in the area of the 38.2 and 50 fibo retracement of the previous trend.
ources:
www.cnbc.com/2019/05/10/what-to-...
www.cmegroup.com/trading/interes...
