US president Trump is to meet with European Commission President Juncker, later today in Washington. The meeting is expected to focus on the US tariffs on steel and aluminium as well as their extension to European cars. The main aim of president Juncker is expected to be a de-escalation of the trade tensions between the two large economies. Analysts state that a potential escalation could hurt the risk sentiment of the market for USD, not only against EUR but against JPY as well.
EUR/USD remained in a sideways movement, as analysed yesterday, well between the boundaries of the 1.1745 resistance line and the 1.1640 support line. We could see some relatively increased volatility on the pair today should the Trump-Juncker meeting display progress, however currently we retain our sideways bias. Technically, it would be evident to note that the RSI indicator in the 4 hour chart remained near the reading of 50, implying an indecisive market. Should the bulls lead the charge in the pair’s direction we could see it breaking the 1.1745 resistance line and aim for the 1.1830 resistance hurdle. Should on the other hand the bears be in the driver’s seat, we could see the pair breaking the 1.1640 support line and aim for the 1.1580 support barrier.