News & Analysis
Eightcap CFD technical insights: US30 has returned to a level that’s shown buyer rejection.
The US-China trade talks continue to have a strong influence on the US30. This morning developments suggested that the trade war is on hold, sending futures markets gaping higher on open.
Treasury Secretary Steven Mnuchin said the prospect of a trade war was “on hold” following an agreement to suspend tariff threats. Mnuchin and Larry Kudlow, who both said the agreement reached by American and Chinese officials on Saturday helped set up a framework to address potential trade imbalances in the future. This has taken the edge off the current trade war worries. Talk continued about measures under which Beijing would import more energy and agricultural commodities from the U.S. in an effort to bridge the $335 billion annual U.S. trade deficit with China.
The US30 which tracks the Dow Jones and Dow Futures opened with a 180 positive gap this morning. Buyers so far have added close to 47 points since open. Price currently sits at an interesting level, 25,000 has stopped buyers on three occasions since the 15th of March. The trade war and interest rate worries have been fueling the rejections. While yields continue to persist the trade, for now, looks to have cooled. So tonight, can buyers break through this level furthering the current recovery trend, or will sellers re-mass and continue to hold their 25,000 level?
Good Trading from Eightcap.
Sources – CNBC
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