Since negotiations between US and China begins, the US dollar weakened against other pairs. Markets seem to have increased their optimism about trade prospects ahead of the start of the negotiations.
EUR/USD rose on the end of the last week. It’s breaking the 1.1428 resistance line. We could see the pair rising even further, remaining above the upward trend-line. We could see it aiming if not breaking the 1.1482 resistance line. On the other side, we could see the pair breaking the 1.1428 support line and the prementioned upward trend-line, opening the way for the 1.1360 support level.
USD seems to be losing steam as headlines about new US-Sino negotiations. President Trump pushes for a better deal with China. Also, White house economic adviser Kudlow, warned Beijing not to underestimate president Trump’s resolve to push for changes in China’s economic policies.
EUR/USD rose breaking the 1.1360 resistance line and stabilized clearly above it. We could see it aiming if not breaching the 1.1428 resistance line, and on the other side we could see it breaking the 1.1360 support line aiming if not breaking the 1.1300 resistance level.
Erdogan stated being against a rate hike intended to improve the Liras downfall. He rejected arguments that Turkey is in a financial crisis. These two countries have been disagreeing on some topics like interests in Syria, buying Russian defense systems, and the case of Andrew Brunson.
US President Donald Trump said that the US would double the tariffs on steel and aluminium imports from Turkey. On the other side, Turkish President Erdogan urged all Turkish citizens to sell their USD in order to strengthen TRY.
EUR/USD weakened further, breaking both of our previous support levels 1.1510 and 1.1445 which have now turned to resistances. We could see the pair aiming for the 1.1445 resistance level and even break it aiming for the 1.1510 resistance barrier. On the other side, we could see the pair may break the 1.1375 support barrier and aim lower for the 1.1301 support hurdle.