Today US is implementing Tariffs on $34bn worth of Chinese imports, further to be levied later. German Industrial production rebounded this week. Oil has started its correctios wave and Trump pushing OPEC members to increase the production further. FOMC minutes shows that the members now are increasingly alert from negative impact of the trade conflict. US successfully added 213K jobs and the unemployment rate rose to 4%. More Brexit uncertainty exists and UK PMIs reading increased.
More bullish sentiment, an upside move toward 1.1850 /1.1950 is expected as long as market is trading above 1.1650/1.1680.
A bullish breakout of the descending channel, the market will target the major resistance level at 1.3450. However, if the market failed to close above 1.3280 we would see a downside move toward 1.3050 but this is less probable scenario.
Markets failed to break the Support at 1242/1238, with an increasing buying momentum the most probable scenario to see the markets target 1287.
Started a correction wave, targeting the 50% of Fibonacci retracement level is highly expected if markets trading below 71.50/71.80.
Prices at the lower boundary of the rising channel, however, we can see buying pressure is developing. So, moving back toward 25000 is expected as long as the market did not break the channel to the downside.
A re-test for the major area of 12500. A downside move toward 12100 is highly expected. However, if markets closed successfully above 12500 level we would see an advance toward 12800.