Germany’s interior minister said that good progress has been made towards an agreement with Italy, regarding the migration issue. It happened after Italy threatened to veto the EU budget. Earlier this month, there were agreements with Spain and Greece, and we can expect to see maybe similar agreement with Italy too! Also, there is possible progress to ease tensions within the EU, especially with Italy.
EUR/USD rose breaking the 1.1675 resistance line and continued to struggle with the level (Asian session). As the upward trend-line remains intact we maintain our bullish bias, however bearish tendencies and some corrections may occur as the US dollar strengthens due to the developments on the NAFTA issue.
We could see it breaking the 1.1675 resistance line and aim for the 1.1740 resistance level. On the other side, if the pair come under selling interest we could see it reaching out or even break the 1.1623 support line.
US Treasury Secretary said that the USA could impose more sanctions to Turkey, if they not make Brunson to be free.
On the other side, Qatar offered support for about 15 Billion USD for the Turkish economy. Germany stated that it wants to avoid an economic melt-down of Turkey, while France seems to be willing to improve trade relationships. If more negative headlines comes, we could see the TRY weakening once again.
USD/TRY dropped breaking the 5.9500 support line and stabilized below it. We could see the pair continuing to trade in a sideways manner. We could see it breaking the 5.9500 resistance line and aim for the 6.2800 resistance hurdle. On the other side, we could see the pair breaking the 5.6700 support line and aim for the 5.4300 support barrier.
The hard stance of USA against Iran made China and Germany to put open expressed their resentment on that action.
USA should pay more attention on European interests when they are coming up with sanctions – said by German government. They also said that sanctions against Iran, made by USA, are violate international law! On the other side, China said that they are against the sanctions. They confirmed that their cooperation with Iran was/is fair and lawful.