President Trump is expected to present new customs tariffs tomorrow tailored for Chinese imported goods worth up to USD 60 billion to reduce the theft of American technology, which will certainly trigger counter measures from Beijing, fueling fears of a global trade war. At 04:30 pm GMT tomorrow, Trump will sign a memorandum "aimed at the economic aggression of China," which will be imposed under Section 301 of the US Trade Act of 1974. US sales representative Robert Lighthizer said on Wednesday that tariffs would be targeted at the Chinese technology sector and could include restrictions on Chinese investment in the United States. Investors are afraid that such a move may lead to similar measures on the part of China, which will probably trigger a vicious circle of retaliatory actions. According to reports from several different sources, China is already preparing for retaliatory measures, including the introduction of its own tariffs for the export of soybeans, sorghum and cattle from the USA. Investors also looked at the meeting of the European Council, while the European Union sought to exempt from the US tariffs on imports of steel and aluminum, which will come into force on Friday.Let's now take a look at the US Dollar Index technical picture at the H4 timeframe ahead of the Trump memo release. The market has bounced from the technical support at the level of 89.41, which is the lower boundary of the main channel as well. Only a sustained breakout below this level would open the road towards the next technical support at the level of 88.45, but so far the bulls are safe. The nearest technical resistance is seen at the level of 89.79 and if broken, then the bulls will likely attack the technical resistance at the level of 90.37.
