With the likelihood of further profit-taking since prices peaked at the near seven-year highs of $1,611, the market bears now look to the recent lows around the $1,538-42, which also, is seen as a trigger point, if breached, as this would expose the area of $1,522-26.
Overnight, investors cheered the Trump administration’s decision to remove China from its list of currency manipulators ahead of Wednesday’s “phase one” trade deal signing ceremony.
With the so-called “Phase-One” deal baked in; China’s top trade negotiator is due to arrive in Washington on Tuesday.
The U.S. is hoping this deal will lead to a new start on trade with China, and the Trump Administration says the deal will create a level playing field for American farmers and manufacturers.
Although safe-haven demand has taken a step back, looking ahead, there is still plenty of uncertainty in the up and coming headlines, from President Trump’s impeachment to a great many geopolitical uncertainties.
From the recent break of the $1,550 support now (in the short-term) gives a neutral outlook until prices either correct above $1,565 (which would reopen the $1,600-15 target), or the current decline continues to the short-term demand area viewed from $1,522-26.