All eyes will be focussed on whether the U.S and China can find a resolution later this week at the G-20 summit in Argentina. The trade disputes have been dragging on for months and until a favourable agreement is reached market uncertainty will continue.
The director of the U.S Economic Council Larry Kudlow, has been holding meetings with Chinese officials on all levels and he felt that there is a “opportunity to break through”. President Trump warned that the tariffs imposed on Chinese imports could be increased to 25% from 10% if an agreement is not reached at the G-20 meeting.
Looking at the daily chart of Wall Street 30 we can see that the price action is on the rise as the support level at the 24372-level hold as news started to surface that a favourable outcome from the G-20 meeting is expected. The next level to watch would be major resistance at the 24966 level which coincides with the 61.8 Fibonacci retracement level.
Source – MetaTrader5
Taking a closer on the 4-hour chartwe can see an Inverse Head and Shoulders (IHS) technical pattern form which signifies that the downward price action is reversing and currently heading higher towards the 61.8 Fibonacci retracement level. If we see a break through the Fib level, then we might see the price action reach 25128 as a target level.
Source – MetaTrader5
Image Source: Wolf of Wall Street
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