*Stock Selloff & Safe-Haven Surge – Equities plunged as risk appetite weakened, while gold hovered near record highs.

*Escalating Trade War – China, Canada, and South Korea vowed retaliation against Trump’s sweeping tariffs, fueling uncertainty.

*Market Volatility Spikes – Investors brace for further turmoil, closely watching trade developments and global economic impact.

Market Summary

Global financial markets faced heightened volatility following U.S. President Donald Trump’s sweeping tariff announcement, prompting a sharp decline in risk appetite. Investors reacted swiftly by offloading high-risk assets, triggering a significant equity market selloff, while safe-haven assets such as gold hovered near record highs amid escalating uncertainty.

The newly imposed tariffs, set at a minimum of 10% on all U.S. imports, with some nations facing duties exceeding 50%, mark one of the most aggressive trade policies in modern history. Major economies, including China, the European Union, Japan, and Vietnam, are among the hardest hit, intensifying fears of a prolonged global trade conflict. This unexpected escalation has sent shockwaves through financial markets, with investors recalibrating their portfolios to navigate the unfolding turmoil.

In response, global leaders have strongly condemned the measures, signaling retaliatory actions. China’s Ministry of Commerce denounced the tariffs as “unilateral bullying” and vowed to implement “resolute countermeasures.” Canada’s Prime Minister Mark Carney declared that Ottawa would fight back “with purpose and force,” preparing a comprehensive set of retaliatory measures.

With trade tensions escalating, investors are bracing for further turmoil. Market sentiment remains fragile, with uncertainty dominating global asset movements.

Current rate hike bets on 7th May Fed interest rate decision: 

Source: CME Fedwatch Tool

0 bps (81.5%) VS -25 bps (18.5%)

Market Movements

DOLLAR_INDX, H4

The U.S. Dollar Index (DXY) gapped lower to 103.06 in today’s Asian session as markets reacted to the Trump administration’s broad-based tariff announcement. Investors perceived the aggressive trade policy as a potential drag on U.S. economic growth, leading to a sharp loss of confidence in the greenback. The dollar’s weakness reflects heightened concerns over the impact of protectionist measures, with traders closely watching for further developments that could dictate the currency’s next move.

The dollar gaped down to its lowest level in 6 months, suggesting a bearish bias for the dollar. The RSI has dipped into the oversold zone while the MACD is hovering alongside the zero line, suggesting that a bearish momentum might be forming. 

Resistance level: 104.70, 106.10

Support level: 101.70, 100.25

XAU/USD, H4

Gold prices broke out of their consolidation range as investors sought refuge in the traditional safe-haven asset amid escalating market uncertainties. The precious metal surged in response to growing trade-war risks after President Trump, as expected, announced a broad range of tariffs targeting most U.S. trade partners. Additionally, the weakening U.S. dollar provided further support, propelling gold to a fresh all-time high. With market sentiment tilting toward risk aversion, gold’s bullish momentum appears firmly intact.

Gold prices extended their gain and have gained more than 2% this month, suggesting a bullish bias for gold. The RSI remains close to the overbought zone, while the MACD hovers at elevated levels, suggesting that the bullish momentum remains intact with gold. 

Resistance level:  3175.15, 3220.00

Support level: 3140.50,  3110.00

GBP/USD，H4

GBP/USD climbed 0.5% to test 1.3000, supported by the UK’s lighter 10% U.S. tariff exposure. The pair remains in a bullish channel, with a break above 1.3000 setting up a move toward 1.3100–1.3200. The Bank of England’s (BoE) relatively hawkish stance provides additional support for the pound, as the UK faces lower direct trade risks. However, global recession concerns and escalating U.S. trade tensions could limit further gains.

The GBP/USD pair is currently trading around 1.3066, with strong upward momentum testing key resistance at 1.3100. The price has recently reached a high of 1.3069, and further upside could target the next major resistance at 1.3175. The RSI is at 74, indicating overbought conditions. Meanwhile, the MACD is showing a bullish crossover, confirming the strong momentum. 

Resistance level:  1.3100，1.3175

Support level: 1.3000，1.2875

EUR/USD , H4

The EUR/USD pair briefly surged 1.3% after Trump’s tariff announcement ignited fears of global retaliation against the United States, keeping demand for the dollar subdued. On the eurozone front, the 20% U.S. tariff on EU goods, set for April 9, threatens to shave 0.3 percentage points off eurozone GDP over two years, keeping the euro under pressure. While the EU plans retaliatory measures by mid-April, prolonged trade tensions could drive further losses. The ECB remains cautious, balancing sticky inflation against weakening growth, with its 2025 GDP forecast cut to 0.6% YoY.

The EUR/USD pair is currently trading at 1.0910, showing strong bullish momentum after rebounding from recent lows.The RSI is at 73, indicating overbought conditions. Meanwhile, the MACD shows a positive crossover, confirming the ongoing bullish momentum. If the pair breaks above 1.0925, further upside toward 1.0960 is likely, while failure to hold above this level could lead to a retracement toward 1.0880 or lower.

Resistance level: 1.0925, 1.0960

Support level: 1.0880, 1.0825

AUD/USD, H4

The Australian dollar (AUD/USD) weakened sharply as US-China trade tensions escalated, given that the AUD is often viewed as a proxy for the Chinese economy due to Australia’s close trade ties with China. With China facing economic uncertainty and slower growth, demand for Australian exports—particularly iron ore and coal—could decline, putting further pressure on the AUD

AUD/USD is trading lower while currently testing the support level. MACD has illustrated diminishing bullish momentum, while RSI is at 48, suggesting the pair might extend its losses after breakout since the RSI stays below the midline. 

Resistance level: 0.6345, 0.6405

Support level: 0.6265, 0.6205

Crude Oil, H4: 

Crude oil prices edged lower as US President Donald Trump announced steep tariffs targeting major trading partners, including China and the European Union. Investors worried that these measures could slow global economic growth and weaken oil demand. Trump stated he would impose a minimum 10% tariff on all US imports and additional duties on around 60 nations with significant trade imbalances. However, oil supply remains unaffected for now, as key crude sources for Midwest and Gulf Coast refiners are not subject to these tariffs. Moving forward, investors will closely monitor escalating trade tensions to gauge oil price direction.

Oil prices are trading lower following the prior retracement from the resistance level. MACD has illustrated diminishing bullish momentum, while RSI is at 53, suggesting the commodity might extend its losses since the RSI retreated to midline. 

Resistance level: 71.75, 75.60

Support level: 66.80, 63.55

Nasdaq, H4: 

US equity futures declined as Trump’s aggressive tariff policies triggered a sell-off in risk assets, particularly in sectors reliant on international supply chains. Retail giants such as Nike, Gap, and Lululemon fell at least 7%, given their dependence on Vietnamese manufacturers. Apple Inc., with its China-heavy supply chain, dropped 6.9%, while semiconductor stocks like Nvidia and AMD also faced steep declines. Major multinationals such as Caterpillar and Boeing saw further losses, reflecting broader concerns over the impact of tariffs on global trade and corporate earnings.

Nasdaq is trading flat while currently testing the support level. However, MACD has illustrated diminishing bearish momentum, while RSI is at 47, suggesting the index might experience technical correction since the RSI rebounded from oversold territory. 

Resistance level: 20345.00, 21135.00

Support level: 19160.00, 18405.00

ETH, H4: 

Ethereum (ETH) remains capped below its long-term downtrend resistance level and is struggling to reclaim the critical $2,000 mark, reinforcing a bearish bias. Market sentiment has deteriorated, with the Crypto Fear and Greed Index sinking to a three-week low amid escalating uncertainties. The resulting risk-off sentiment has intensified selling pressure on ETH. A failure to hold above the key support level at $1,780 could signal further downside, potentially accelerating the bearish momentum.

ETH is now trading in a lower-high price pattern, suggesting a bearish bias. The RSI remains close to the 50 level, while the MACD seemingly fails to break above the zero line, suggesting that the bearish momentum with ETH is overwhelming. 

Resistance level: 1950.00, 2170.50

Support level: 1780.00, 1640.40