Investors are somehow cautious ahead of a meeting between U.S. President Donald Trump and European Commission President Jean-Claude Juncker at the White House this afternoon.
The meeting comes after strict trade tensions between the European Union and the United States.
Trump has already slapped tariffs before on steel and aluminum imports from the EU and has threatened to extend those decisions to the European auto sector.
“The European Union is coming to Washington tomorrow to negotiate a deal on Trade. I have an idea for them. Both the U.S. and the E.U. drop all Tariffs, Barriers and Subsidies! That would finally be called Free Market and Fair Trade! Hope they do it, we are ready – but they won’t”. Trump tweeted
On the other hand, negotiations for a new North America Free Trade Agreement (NAFTA) will be restarted after stalling ahead of Mexico’s presidential election on July 1. Canadian Foreign Affairs Minister Chrystia Freeland will discuss progress in Mexico today with both the incoming and outgoing administrations, while Mexican Economy Minister Ildefonso Guajardo will be in Washington tomorrow to meet with U.S. Trade Representative Robert Lighthizer. Gaping differences are expected to be resolved, including car-trade rules and a sunset clause that would kill the deal after five years.
Earlier, the Australian CPI came as expected with 0.4% along with the trimmed mean CPI with 0.5%; investors were expecting any rise in inflation to get any clue of when the RBA may raise the rates
On the daily chart, the price has bounced from the red resistance zone for the third time to shape the reversal triple top.
Price has recently formed another reversal pattern to assure the bearish bias with the wedge.
Followed by a break beneath an ascending trend on RSI, the index is settled down at the ascending trend line, if it’s broken, the price will have its way back to the support zone 93.2-92.6
On the daily chart, the pair reached back the green support zone again to shape a double top pattern
Followed by divergence on RSI, our bullish view is still the same: if the price manages to still above the support area and the key level 0.7455, it will be heading towards the combination of levels of descending trend, ascending channel and resistance zone at 0.7655-0.774.
On the daily chart, the price retested the green support zone 0.675-0.6695, followed by divergence in RSI.
An AB=CD harmonic pattern has been shaped to reinforce the bounce.
If the price could break above the key level at 0.6845, the price will be supposed to head back to the top of the descending channel with the resistance zone at 0.697-0.703 only if it manages to hold above the green zone
On the daily chart, as we expected, the price has bounced from the red resistance zone at 83.9-85.95 with engulfing bar
The price is expected to continue its reverse to keep going in its sideways movement to the support zone 81.2-80.5