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.
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.
Canada is thinking of introducing a safeguard action on seven steel products. Canada’s government will look into the matter in depth and identify any threats and safeguards will be applied. EU announced its own safeguards in July. Also, on Tuesday, Canadian dollar was the top performer.
USD/CAD war dropping (during the European session) and followed up with the same trend (during the US session). The financial data to be released today in the US session could apply more downward pressure for the pair. Anyway, we could see it move lower to the 1.3059 support level and break it aiming for the 1.3034 support barrier. On the other side, we could see it move towards the 1.3091 and even breach it.