After two days, US-Sino trade negotiations is finished and it looks like there wont be any main breakthrough. We can expect a new round of US tariffs for about $16 billion of Chinese products.
Fed’s Chairman Powell will speak and we can expect of him to defend the Fed’s current rate hike path. The speech’s title is to be “Monetary Policy in a changing economy”. This even could effectively raise the US dollar’s value with adverse effects. On Powell’s speak we can also expect the low unemployment as well as the accelerating inflation and GDP growth rates in order to argue for the economic situation. Also, we can expect comments about the international trading relationships and their effects on the US economy.
EUR/USD moved sideways with some bearish tendencies, testing the 1.1537 support line. If the pair come under selling interest we could see it breaking the 1.1537 support line and aim for the 1.1482 support barrier. On the other side, we could see it rising and aiming if not breaking the 1.1623 resistance line.
The US dollar continued to fall. You should pay attention to the fact that the insignificant political instability of the US with the former collaborators of President Trump who faced judicial problems did not help the American banker. FOMC meeting can be the next milestones in the dollar’s situation. If there was a positive signal from the negotiations on improving trade relations between the US and China, the USD could further weaken.
EUR/USD increased resistance level 1.1537. The pair has even increased rapidly the growth trend,. The couple may prove to be vulnerable to the release of the FOMC meeting. We could break the resistance level 1.1623 and target the 1.1675 barrier of resistance. And on the other side, we could see that they interrupt the level of support 1.1537 and target the obstacle to support 1.1482.
The US dollar weakened even more from the past headlines. Donald Trump said that ump stated in an interview that he is not thrilled with the Fed hiking rates. He also said that Fed should do more to help him boost the economy. Europe and China of manipulating their own currencies – accused by Trump. We could expect for US dollar weakened even more in future, if we get some highlights.
EUR/USD rallied yesterday and during Asian session, breaking the 1.1482 resistance line and testing the 1.1537 resistance level. We could see the pair breaking the 1.1537 resistance line and aim for the 1.1623 resistance level. On the other side, we could see the pair breaking the 1.1482 support line.