empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
07.05.2025 01:06 AM
Trade War as Part of Global Confrontation
Open trading account Open demo account

This image is no longer relevant

Many may believe that the trade war initiated by Donald Trump is simply a tool to reduce the budget deficit and national debt. However, it becomes clear upon closer examination that it is just one piece of a broader global confrontation between China and the United States. These two superpowers continue to compete for global dominance and leadership, and weakening the rival is part of any government's strategic playbook. While there was no major escalation under the peaceful leadership of Joe Biden, under Trump, who openly clashed with China eight years ago, the fate of the conflict was essentially sealed in advance.

Recently, U.S. Defense Secretary Pete Hegseth stated that Chinese missiles could destroy an American aircraft carrier in 20 minutes. According to Hegseth, China is building an army capable of conquering the world, including the U.S. America loses in every simulation of open conflict with China studied by the Pentagon. Despite being the world's wealthiest country, the U.S. is not investing enough in weapons and its military. Trump has promised to increase defense spending to $1 trillion, but that money must come from somewhere. And where, when the U.S. budget runs a deficit year after year? That's why a new global trade architecture is needed—one where America earns more.

Trump has repeatedly stated that his main competitor is China and that it must be weakened by any means necessary. For instance, reports have surfaced that Trump offered various countries reduced import tariffs in exchange for limiting trade relations with China. After pouring $1 trillion into the Chinese economy, Washington finally realized that American dollars are enriching not just the U.S. but China as well. Trump intends to correct this "injustice."

This image is no longer relevant

Viewed from a distance, like in a strategy video game, Trump's actions make sense. China does indeed earn hundreds of billions from trade with the U.S., which it uses to build military and technological strength. Twenty years ago, Chinese cars and smartphones were a global joke because of their poor quality. Today, Chinese technology has reached a level that triggers serious concern, even across the ocean.

However, Trump's goal isn't only to weaken China financially. He also wants to boost the U.S. economy, and it's this second part that raises the most doubts. American businesses have already submitted a collective letter to Trump outlining the risk of bankruptcy if tariffs are not lifted. U.S. companies with production in China plan to leave the country, not to return to America but to relocate to other low-cost labor markets, and there are plenty of those around the globe.

Wave Pattern for EUR/USD:

Based on the conducted analysis, EUR/USD continues to build a bullish wave structure. In the near future, the wave pattern will depend entirely on the position and actions of the U.S. President. This is a key factor to keep in mind. The formation of Wave 3 of the upward trend has begun, with its targets potentially extending up to the 1.2500 area. Achieving these targets will depend entirely on Trump's policies. At this stage, Wave 2 within Wave 3 appears close to completion. Therefore, I consider buying opportunities with targets above 1.1572, corresponding to 423.6% on the Fibonacci scale.

This image is no longer relevant

Wave Pattern for GBP/USD:

The wave structure of GBP/USD has changed. We are now dealing with a bullish impulsive segment. Unfortunately, with Donald Trump in office, markets could see many more shocks and reversals that do not align with wave analysis or traditional technical logic. Wave 3 of the upward trend continues, with near-term targets at 1.3541 and 1.3714. Of course, it would be ideal to see a corrective Wave 2 within Wave 3 before further gains, but it seems the dollar can no longer afford that luxury.

Core Principles of My Analysis:

  1. Wave structures should be simple and understandable. Complex formations are difficult to trade and often subject to change.
  2. If you're not confident in the market situation, it's better to stay out.
  3. Absolute certainty in market direction doesn't exist. Always use protective Stop Loss orders.
  4. Wave analysis can be effectively combined with other forms of technical and strategic trading approaches.
Chin Zhao,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Technical analysis
EUR/AUD Forecast for July 3, 2025 On the daily chart, the EUR/AUD pair is moving sideways in the upper half of the price channel and above the MACD indicator line. The signal line of the Marlin
Laurie Bailey
06:33 2025-07-03 +02:00
1090
Technical analysis
EUR/USD Forecast for July 3, 2025 Ahead of today's U.S. employment data release for June, the euro consolidated near the price channel line on the daily chart. The long lower shadow of the candlestick suggests that
Laurie Bailey
05:11 2025-07-03 +02:00
1210
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Overview – July 3: Jerome Powell Finally Responded to Trump

The GBP/USD currency pair plummeted on Wednesday like a stone. However, every drop in the pair eventually gives way to a much stronger rise. Therefore, at this point, there's
Paolo Greco 03:45 2025-07-03 UTC+2

EUR/USD Overview – July 3: One Big Trump Law Passed, Dollar at 4-Year Lows

The EUR/USD currency pair traded relatively calmly on Wednesday, although the word "calm" may not accurately describe the daily decline of the dollar. The most accurate picture of what's happening
Paolo Greco 03:45 2025-07-03 UTC+2

Transition from Aggressive to Cautious Position by the ECB

The annual economic forum is currently taking place in the Portuguese town of Sintra, which explains the daily speeches by central bank heads. Most of the information being shared
Chin Zhao 00:42 2025-07-03 UTC+2

USD/JPY. Yen: Interrupted Flight

The USD/JPY pair dropped by 200 points over two days and on Tuesday hit a nearly four-week low, testing the support level at 142.70 (the middle line of the Bollinger
Irina Manzenko 00:38 2025-07-03 UTC+2

The Dollar Has Found Its Achilles' Heel

Be careful what you wish for. Euro supporters believe that EUR/USD will reach at least 1.25 by 2026. However, one must understand that while the eurozone may remain a unified
Marek Petkovich 00:38 2025-07-03 UTC+2

USD/JPY. Analysis and Forecast

Recent political and economic statements are having a significant impact on the USD/JPY pair's dynamics. U.S. President Donald Trump expressed frustration over the prolonged trade talks with Japan
Irina Yanina 18:51 2025-07-02 UTC+2

Crowd sets tone, market follows

No fight. The S&P 500 managed to hit new record highs because market professionals — the so-called "smart money" — see no need to go against the prevailing momentum
Marek Petkovich 12:46 2025-07-02 UTC+2

AUD/USD. Analysis and Forecast

Today, the AUD/USD pair is retreating slightly from the new yearly high near 0.6590 reached yesterday and is trading within a narrow range. Nevertheless, the potential for further downside appears
Irina Yanina 12:44 2025-07-02 UTC+2

USD/CHF. Analysis and Forecast

The USD/CHF pair continues to trade within a narrow range above the 0.7900 level, remaining close to price levels last seen in 2011. The US dollar is showing some gains
Irina Yanina 11:58 2025-07-02 UTC+2

Investors Filled with Optimism, Driving Market Demand Higher (EUR/USD and GBP/USD Pairs May Face Corrective Declines)

Markets continue to react positively to the stabilization of the situation in the Middle East in anticipation of negotiations between Israel and Iran. Meanwhile, investors have shifted their full attention
Pati Gani 11:22 2025-07-02 UTC+2

Top analytics

Relevance up to 19:00 2025-07-03 UTC--5
EUR/USD Overview – July 3: One Big Trump Law Passed, Dollar at 4-Year Lows
03:45 2025-07-03
Fundamental analysis
Relevance up to 22:00 2025-07-03 UTC--5
EUR/USD Forecast for July 3, 2025
05:11 2025-07-03
Technical analysis
Relevance up to 19:00 2025-07-03 UTC--5
GBP/USD Overview – July 3: Jerome Powell Finally Responded to Trump
03:45 2025-07-03
Fundamental analysis
Relevance up to 19:00 2025-07-03 UTC--5
Trading Recommendations and Analysis for EUR/USD on July 3: The Euro Holds Up, the Pound Plunges
03:45 2025-07-03
Trading plan
Relevance up to 22:00 2025-07-03 UTC--5
GBP/USD Forecast for July 3, 2025
05:11 2025-07-03
Technical analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.