The Dow Jones index grew for 94.55 points, breaking the important 25,000 level for the first time in a month. The technology-powered NASDAQ was leading because the investor’s attention switched from trade war to fact that Washington and Beijing are going to continue trade talks. For the week, the Dow is up 2.3%.
DJ has broken the 100 and 50 SMAs on the last week, RSI is positive and shows signs of rebound while still under overbought zone. In that case, we recommend buying it in the middle-term period, because it has a good technical background to grow up to 25500
While China was worrying about the aftermaths of 10% US duties EUR/GBP was sent high to 0.8865, the highest level since 9th July. The reason for that was Trump criticism about May’s plans for soft BREXIT. However, there was a rebound to 0.8825 the US session.
The price was locked between the triangle’s resistance and support lines and consolidates there breaking down the 10 Day SMA. The 0.9030 October 2017 high is a general target to stop the global consolidative process through the breaking resistance of the bearish triangle.
So, our targets for
DOW JONES – buy to 25500
EURGBP – buy to 0, 9930 in a long term period