Tensions between the U.S. and its allies continue, as India joined China and the European Union in retaliation against steel and aluminium tariffs. As the biggest buyer of almonds, India raised its tariff on U.S. almonds by 20%
The European Union imposed tariffs on about $3.4 billion of U.S. imports on Friday, including motorcycles, orange juice and cranberry sauce. The tariffs have added to tensions as investors fear an outright global trade war between the U.S.and other major countries.
On the other hand, French and German business activity in June came in higher than expected, easing concerns of a slowdown in the Eurozone.
Good news for Greece is that the Eurozone creditors finally agreed a debt relief deal that will help Greece exit its bailout program.
Following late-night talks in Luxembourg, the Eurogroup agreed to hand Greece a final loan tranche of €15 billion.
The Organisation of the Petroleum Exporting Countries (OPEC) is gathering in Vienna amid calls from the United States, China and India to cool down the price of crude and prevent an oil deficit that would hurt the global economy.
Saudi Arabia and non-OPEC Russia have said a production increase of about 1 million barrels per day (bpd) or around 1 per cent of global supply had become a near-consensus proposal for the group and its allies.
Although a final decision may not arrive until Saturday when OPEC officials are scheduled to meet with their non-member allies who formed part of the 18-month accord to curb production by 1.8 million barrels per day.
On the daily chart, the price has reached a combination of support levels, with a support zone of 0.682-0.6785, an ascending trend line from the low of 2007, and finally with a BAT harmonic pattern.
The price is expected to get back up again to retest the resistance zone at 0.698-0.703.
As we expected before, the price has reached the support zone 81.2-80.5 as it is moving sideways now.
So, with this engulfing candle, we expect the price to retest the head of the pattern to reach the levels of 84-84.4 again.
On the daily chart, as we expected the pair had broken the ascending channel followed by bouncing from the descending trend from the high of 2017 and the key resistance of 111.1.
The price also broke the support of 110.05 to reach the next support 108.15, to then get back up again from this level to retest the level at 110.05.
As you can see on the chart, the price is moving according to Elliot waves. By forming the A & B waves, we are waiting for the next move down to hit the C level which is located at the support of 106 and also to meet the ascending trend from the low of 2016.
So, a bounce has started and on its way.
On the daily chart, as we expected before, the price had made its way up to targets at the resistance zone 1.0815-1.0865, boosted by a BAT harmonic pattern.
The price has already made its retracement as we expected it to.
Reaching the support zone and shaping the Gartley harmonic pattern, the price is supposed to continue its bullish movement up to the 1.1045 level after forming hammer & engulfing candles respectively.
As we expected before, the price has reached the key resistance level 1.334.
As we can see the price is located at very strong selling area according to;- key resistance level, 78.6% Fibonacci, the upper level of the reversal wedge, forming the “Gartley” harmonic pattern, and overbought in RSI.
So, any bounce there will lead the price down to the support zone at 1.309-1.299.