Forex Signals Brief for May 10: Tariffs Set to Rise

The US-China trade negotiations have ended for the day and it appears there is no extension coming. That means the trade tariffs on Chinese goods will be increasing – unless we hear otherwise.

Markets have been swinging wildly throughout the Asian session as traders have been waiting anxiously for any further updates. However, as the talks ended for the day, markets began assuming there was no good news here.

Despite the ups and downs, the ES futures are only marginally lower on the session so far so the full impact is yet to be seen.

In other news there is a host of other major data out today in the UK led by GDP. While in the US we will get some more info on the state of inflation and in Canada they will be releasing employment data.

Overall, this is an active and volatile day so be prepared for some opportunities as Europe and the US open. There is still a chance of more US-China developments so stay tuned for any further updates.

Forex Signal Update

The FX Leaders Team finished the session with one win from three signals.

NZD/USD – Active Signal

The NZD/USD has bounced back through 0.6600 as the USD weakened. This will be one to watch along with all the risk-on plays as the fallout from the trade talks continues.

Gold – Active Signal

GOLD has been grinding higher as the tension over the trade deal continues to be at all-time highs. We are long and looking for some more upside here.

Cryptocurrency Update

BTC continues its strong run and is holding the $6,000 level with relative ease at the moment.

What will be very interesting in the coming days, will be to see how it handles the major resistance at $6,400. There is plenty of previous volume from that point all the way up to $6,800.

Given the fast run we’ve seen to that point I expect price will test $6,400 before slowing down into the heavy resistance.