Breaking forecast 04/05/2018
EURUSD: The exit from the range is inevitable.
On Wednesday, the focus of the markets was still the story of the trade war declared by the US President Donald Trump against China.
It should be noted that Trump demanded from his administration to introduce new tariffs for a huge amount of $50 billion for goods from China. Trump officials fulfilled the request: Already on Tuesday, the US announced a list of 1,300 goods from China that will pay 10-25% of duties for $ 50 billion - mostly high-tech products - semiconductors, batteries and products for space.
The reason stated by Trump for duties: The huge deficit of US trade with China is about $350 billion, plus the huge US losses from theft by China of US intellectual property (Trump claims losses of $300-500 billion).
China immediately gave a tough answer: A list of 106 US goods on which it will impose duties on the same amount of $50 billion - all grains from the United States, automobiles, and airplanes (Boeing).
Trump and the US could not stand the pressure and on Wednesday said "they did not mean to start the trade war and are ready for the negotiations."
Markets positively perceived this signal - the US market grew strongly to close on Wednesday.
As before, this is the main story. Report on employment in the US from ADP almost did not affect the market - despite the strong data +240, 000 new jobs. (On Friday, April 6, non-farm payrolls will be published).
So, EURUSD:
Consolidation continued. The exit point is getting closer.
We are buying from 1.2350 stop at 1.2305 profit at 1.2680
Sell from 1.2238, stop at 1.2283 profit at 1.2000.
