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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Top 3 charts of the week: CHNComp, GBPUSD, Copper

13:41 29 January 2019

Summary:

  • HSCEI (CHNComp) climb back to the crucial resistance zone

  • GBPUSD trades in the vicinity of important price zone

  • Concerns over global slowdown negatively impact copper prices

The first of three charts we consider interesting this week is HSCEI (CHNComp) - the Chinese stock market index. Negotiators from China and the United States will start a fresh round of trade talks in Washington tomorrow. What differs upcoming talks from the ones that were held earlier this month is the fact that now high-profile officials will meet. However, the latest turmoil surrounding Huawei may turn to be a hurdle towards making progress. A failure to move closer to resolving a deal may exert pressure on the global stock markets. CHNComp moved higher towards the supply zone in the vicinity of 11000 pts after an over 12% rally since the latest low. The aforementioned zone is additionally strengthened by the 200-session moving average therefore bulls may find it to be a hard nut to crack.

Source: xStation5

When it comes to the FX market, the British pound continues to be in the spotlight. GBP remains to be sensitive to any headlines relating to the Withdrawal Agreement. The UK Parliament will vote on the so-called “Plan B” today but odds suggest that the political impasse is likely to prevail. On the other hand, in case the parliament votes for amendments proposed by MPs the UK PM Theresa May will have to go back to Brussels to renegotiate terms of the deal. Diminishing chances of no-deal Brexit support GBP recently allowing GBPUSD to visit 1.3280 area. From the technical point of view, the pair may now erase some of the latest gains and even pull back towards the 50-session moving averages channel. Moreover, it should be noted that tomorrow’s FOMC meeting may have big impact on the USD and in turn on GBPUSD as well.

Source: xStation5

As the trade talks are to be resumed tomorrow it may be worth to take a look at the situation on copper market. Prices of commodity are hugely dependant on the condition of the Chinese economy. Negative news concerning trade talks could hint that the Chinese economy could slow further and are likely to exert pressure on copper prices. On the daily frame, copper price rebounded off the lows from mid-2018. However, pace of rally was rather lacklustre and it looks like current improvement of moods may be short-lived. Breakthrough in trade talks seems to be the only chance for copper to produce a longer-lasting upward move.

Source: xStation5

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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