Sometimes it is good to get up early in the morning. A while ago, markets were hit with the rumour that Donald Trump asked his cabinet to draft possible China trade deal. Well, great!
Thanks to this news, we do have a breakout of the down trendline on the EUR/JPY. Not that it was not expected earlier as the price created an inverse head and shoulders pattern. The neckline (orange) was already broken yesterday, so traders were anticipating a further rise. In this case, fundamentals came in line with the technicals.
NZD/USD also got an additional boost and here, it was also in line with the technical analysis. The buy signal was triggered yesterday when the price finished the head and shoulders pattern and broke the long-term down trendline. The buy signal is ON but watch out for a small pull-back in the nearest future.
Last one is the oil, which is quietly going down. After the up trendline, now we are breaking the horizontal support. The bears are winning this one and they should not be defeated anytime soon.