Weekly outlook: Keep the short.

20 thg 5, 2019

As we can appreciate the price rebound from the lower part of the channel the price didn´t recieve the strong enought to break the line yet

What to take on considerations:

In the fundamental side: The US-China trade deal end with rise on tarrif on both countries, the market is pondering the situation. last week weak reports on consumer and industry are concerning the market expectation on the fed rate, the market is expecting cut rates for year end according CME fedwatch tool, so monday Powell speak is going to be relevant, if the Fed is going to give signals to fulfill the market expecation or not, if fulfill market, we can expect a down movement on the DXY nad vice versa.

In the technical side: The price had rebound the lower part of the channel, is in the 0.764 fibo level of the 4h timeframe, a deep retracement, depend on the situation of the fundamental aspect which will define if the price touch a new higher level in the upper part of the channel or if just start a consolidation process before the sharlpy drop.

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