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FxWirePro: Nikkei trades higher on US-Mexico trade deal, good to buy on dips

Asian markets are trading higher after US -Mexico reached trade deal. US stock market hits life time high and US dollar hits one month low . US President Donald Trump said that US and Mexico has agreed on terms that would make for an “incredible” deal that was “much more fair”. This trade agreement has reduced trade war tension and has fueled risk appetite.Shanghai is trading flat and any break above 2806 confirms minor bullishness.It is currently trading around 2790. US dollar has lost nearly 50 pips from the high of 95.16 and is currently trading around 94.86.US markets closed higher with Dow Jones 26049 (1.01% higher) and S&P500 2896 (0.77% higher). US futures is trading flat with Dow Jones at 26102 (0.09% higher) and S&P500 2898 (0.08% higher). Nikkei is currently trading around 22901 0.30% lower.
 

USD/JPY has recovered slightly after hitting low of 110.93 yesterday.It is currently trading around 111.33 (0.23% higher).
 

On the lower side, index major support is around 22420 and any break below will drag the index down till 22360/22200/22000. The major long term support is around 21750.
 

The near term resistance is around 23040 and any convincing break above will take the index to next level till 23200/23480.


It is good to buy on dips around 22600-650 with SL at 22400 for the TP of 23050/23200.

 

 

 

 

 

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