Trump willing to meet Iran’s Rouhani

US president Trump expressed his willingness to meet with Iran’s leader Rouhani without any preconditions attached. Iran responded with stating that the way back to negotiations was for the US to return to the 2015 nuclear deal. As the 7th of August deadline for renewed US sanctions against Iran is approaching, diplomacy seems to be getting started. Analysts as well as president Trump, paralleled the move with the US-North Korea negotiations which rendered some results. Any further improvement in the US-Persian relationships could affect oil prices as well as the USD.

EUR/USD continued to trade in a sideways manner yesterday, well between the 1.1640 support line and the 1.1745 resistance line. We could see the pair continuing to trade in a sideways manner today. However as there is a plethora of financial releases affecting the pair, volatility could rise somewhat. Should the pair come under selling interest we could see the pair breaking the 1.1640 support line and hover below it. Should the market favor the long positions on the other hand, we could see the pair breaking the 1.1745 resistance line and aim for the 1.1830 resistance hurdle.


Trump meets with EU’s Juncker

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.

Trump-Kim meeting happening now

According to media as the Trump-Kim meeting is ongoing, the first positive signs start to come out. When asked how the meeting is progressing, president Trump said “Very good. Very, very good” while Chairman Kim stated that “we overcame all kinds of skepticism… and it’s good for peace”. Should the meeting have a positive outcome, we could see the start of a process for further stabilization of the Korean peninsula. It might also be the case that the two leaders could surprise the markets by agreeing more than expected or today’s meeting having more concrete results. The markets reacted calmly at the start of the meeting, while should there be further positive headlines we could see the USD strengthening and safe havens weaken.

USD/JPY rose yesterday breaking the 109.75 resistance line and tested the 110.45 resistance line. We see the case for the pair to continue to have bullish tendencies as the outcome of the Trump-Kim meeting and the US financial releases later today could support the USD side. Should the bulls continue to be in charge, we could see the pair breaking the 110.45 resistance line and aim for the 111.00 resistance hurdle. Should the bears take over, we could see the pair breaking the 109.75 support line.