On Friday, the greenback stepped lower as the market anticipated a critical meeting between the heads of the United States and China at a Group of 20 summits. G20 Summit begins Today, while the leaders of the U.S. & China are due to meet tomorrow. Investors are advised to monitor them for any signs of progress to end their heated trade war.
Economic Events to Watch Today
EUR/USD – Daily Outlook
Ahead of the critical trade talks at G-20 meeting between the United States and China, the direct pair EUR/USD is lacking a clear directional tendency. This could hit market expectations regarding the upcoming sentiments about the interest rate cut by the federal reserve bank.
Meanwhile, the currency pair EUR/USD formed a Doji pattern for a second day, signalling a neutral sentiment in the marketplace. The candlestick pattern has taken the shine off the inverse head-and-shoulders breakout, and the pair likely break out of the 200-day moving average seen last Friday.
The currency pair EUR/USD is trading mostly steady on the day around 1.1365. The pair EUR/USD has been range bound trading in 1.1345-1.1390 range since Wednesday.
Daily Support and Resistance
S3 1.1298
S2 1.1332
S1 1.135
Pivot Point 1.1366
R1 1.1384
R2 1.14
R3 1.1434
Consider staying bullish above 1.3360 as the EUR/USD can surge up to 1.1400. Bearish moves can be seen below 1.3360.
GBP/USD – Daily Outlook
The pair GBP/USD quick drops before the release of UK GDP and trade talks at the G-20 meeting. The pair GBP/USD pushed on due to two reasons; the first is the fear of no Brexit deal and second is the low confidence of consumers, both weighted on the GBP/USD before of the European session open on Friday.
All investors eyes on the final reading of the first quarter of London GDP and also the G20 meeting for fresh movement, because maybe second-grade data from America can offer trade opportunities.
Today in the earlier market session, the U.K. Times declared that the British Prime Minister (PM) is expecting that Boris Johnson is making an emergency budget for no-deal anxieties that introduce the aggressive tax cut and also covers the amendments in the stamps duties.
Daily Support and Resistance
S3 1.2555
S2 1.262
S1 1.2645
Pivot Point 1.2685
R1 1.271
R2 1.275
R3 1.2815
Consider keeping an eye on 1.2660 as the violation of this level could trigger a sharp sell-off until 1.2640 and 1.2600.
AUD/USD – Daily Outlook
The currency pair AUD/USD moving around 0.70, crossing over the double top resistance level. Yesterday, the pair AUD/USD closed above psychological hurdle of 0.70. Until now, the pair AUD/USD has failed to gain on the bullish breakout, although it was expected to surge to 0.7060.
Australia’s private quarter stocks increased by 3.6% in May vs. 3.7% rise in the past month. The surge could be compared with the expectations of the Federal Reserve and the expectations that the U.S. and China will reach on some positive outcomes at the G-20 meeting.
Despite the recent increased, the AUD/USD pair is still under 1.34% from this quarter’s opening price of 0.7206.
Daily Support and Resistance
S3 0.6956
S2 0.6978
S1 0.6992
Pivot Point 0.7001
R1 0.7014
R2 0.7023
R3 0.7045
Consider staying bullish over 0.7000 support today as Aussie has a potential to target 0.76 later. All the best!
