Updates on Trump’s Tariff Decisions

Trump Plans 25% Tariffs on Mexico and Canada

President Donald Trump has announced plans to implement tariffs of up to 25% on imports from Mexico and Canada, starting February 1, 2025. Trump justified this move by claiming that these countries have not taken sufficient measures to control the flow of undocumented migrants and drugs into the United States. Global forex patterns suggest these tariffs could significantly impact currency valuations and portfolio allocation strategies.

10% Tariff on Chinese Imports

In addition to tariffs on North American neighbors, Trump is set to impose a 10% tariff on all imports from China. If sustained, these tariffs could generate an estimated $1.5 trillion in revenue by 2035. Entry point strategies may need to be adjusted as trade tensions shift market dynamics.

Backtracking on Colombian Tariffs

Trump initially threatened to impose tariffs of up to 50% on Colombia after its government refused to allow U.S. military planes carrying deported migrants to land. However, following successful negotiations in which Colombia agreed to accept deported individuals, Trump has temporarily decided against implementing these tariffs. Auto trade alerts can help traders react to such policy shifts in real-time.

Potential for Additional Tariffs

There is speculation that Trump may introduce further tariffs beyond the announced rates, which could significantly amplify the financial impact of his trade policies. The administration has signaled its intention to continuously review trade deals, potentially leading to new tariff actions in the future. Candlestick patterns can be used to assess price action responses to tariff developments.

Impact on Other Imports

Trump has also indicated plans for sweeping tariffs targeting multiple sectors, including steel, aluminum, copper, semiconductors, and pharmaceuticals. Details on these measures are expected to be announced soon. Portfolio allocation adjustments may be necessary for investors exposed to these industries.

GOLD

Gold prices are currently held up by the previous swing low and the EMA 200. While normalization of the drop is evident in the RSI, and the MACD shows growing volume with increasing bearish momentum, overall price action maintains a bullish bias as prices quickly returned above the zone after breaching the low. Candlestick patterns suggest consolidation ahead of the FOMC decision. If the FED heeds Trump’s call for immediate rate cuts, entry point strategies may shift as gold prices surge. Auto trade alerts will be crucial in capturing real-time trading opportunities.

SILVER

Silver prices are currently consolidating between 30.6675 and 29.9000. Both the RSI and the MACD indicate increasing selling momentum in anticipation of a stronger Dollar and the resolution of geopolitical tensions. However, global forex patterns indicate that buying of Gold could pull Silver prices upward. Auto trade alerts and candlestick patterns will help traders navigate these price swings.

DXY (US Dollar Index)

The Dollar gapped higher, reflecting an overall appreciation in demand. The MACD shows increasing volume, though prices are rising unexpectedly fast. The RSI is signaling overbought conditions, suggesting a possible price reversal for normalization. Despite this, global forex patterns show that bearish structures are still respected, and entry point strategies should account for potential retracements.

GBPUSD

The Pound is currently consolidating, with the MACD indicating increased selling volume and momentum. The RSI calls the current low oversold, reflecting the market’s consolidated state. Candlestick patterns suggest potential bullish demand despite fundamental expectations for weakness. Auto trade alerts will be useful for capturing reversal signals.

AUDUSD

The Australian Dollar slipped and weakened after Trump’s announcement of tariff plans. He proposed imposing tariffs on imported chips, pharmaceuticals, steel, aluminum, and copper, which are significant contributors to Australia’s economy. Portfolio allocation strategies should consider the impact of these tariffs on AUD.

Both the MACD and RSI indicate healthy growth in bearish momentum and volume, with prices now back within the upper boundary of the consolidation zone. This shift signals a return to bearish momentum, which the EMA 200 also acknowledges. Auto trade alerts should be used to monitor key entry points.

NZDUSD

The Kiwi is currently testing the upper boundary of the previous consolidation zone. A successful breach below this zone would shift overall market momentum to bearish. The EMA 200 is supporting the market but could soon reflect a bearish move. Entry point strategies should be adjusted accordingly, and auto trade alerts can provide timely insights.

EURUSD

The Euro is currently consolidating, with increasing selling momentum after failing to break above the swing high. Candlestick patterns and global forex patterns suggest potential downside risks. Entry point strategies should be prepared for a possible bearish shift.

USDJPY

The Yen gained strength following the BOJ’s previous hawkish outlook. Analysts expect bullish price movement to persist due to the Yen’s hawkish stance. However, the RSI indicates overbought conditions, suggesting a potential retracement soon, while the MACD’s sudden curve makes it unreliable at this point. Auto trade alerts should be used to track potential market corrections.

USDCHF

The Franc fell during yesterday’s session due to Dollar weakness but rebounded after renewed tariff threats from Trump. The RSI indicates overbought conditions, suggesting a near-term retracement. Portfolio allocation adjustments may be necessary given shifting trade dynamics.

USDCAD

The Canadian Dollar remains consolidated as markets await Trump’s decision on tariffs, expected by February 1. If implemented, tariffs could significantly strengthen the USD while weakening the CAD. Auto trade alerts will be beneficial in tracking breakout opportunities.

The MACD and RSI indicate ongoing consolidation without a clear directional bias. Global forex patterns suggest long-term strength for USD if tariffs materialize. Rate cut decisions later this week could also shift market dynamics.

COT REPORT ANALYSIS

• AUD – WEAK (4/5)
• GBP – WEAK (5/5)
• CAD – WEAK (4/5)
• EUR – WEAK (5/5)
• JPY – WEAK (3/5)
• CHF – WEAK (5/5)
• USD – STRONG (4/5)
• NZD – WEAK (4/5)
• GOLD – STRONG (5/5)
• SILVER – STRONG (5/5)

By leveraging candlestick patterns, entry point strategies, auto trade alerts, portfolio allocation, and global forex patterns, traders can refine their approach to navigating these markets effectively.