On Sunday, it was made public that during telephone calls, both parties agreed to continue dialogue in order to resolve outstanding disputes. At the American session, investors ran out of risky assets after reports from a CNBC correspondent that Beijing’s mood for a deal was pessimistic because of US President Trump’s reluctance to cancel tariffs on Chinese imports. Gold and yen went up, while the yuan price fell.
Day’s news (GMT 3):
10:00 Switzerland: Trade Balance (Oct).
12:00 Eurozone: Current Account n.s.a (Sep).
14:00 UK: CBI Industrial Trends Survey - Orders (MoM) (Nov).
16:30 Canada: Manufacturing Shipments (MoM) (Sep).
16:30 USA: Building Permits Change (Oct), Housing Starts (MoM) (Oct).
The euro exchange rate recovered 50% of recent loses from 1.1155 to 1.0992. For three days, an ascending channel with a range of 32 points was formed. In Asia, the price fell to 1.1063. US-China news continued to have a strong impact on all markets.
The current price is 1.1079. According to the forecast, the pair is expected to increase to 1.1085, and in the US session - decrease to 1.1060. A fall below this level is not currently considered, since it will be necessary to study the reaction of bulls when the price and the balance line meet.
According to the wave structure, growth is allowed up to 90th degree. Here we can consider the formation and development of a double peak. Volumes are small on growth, therefore, we must monitor the price behavior when approaching the trend line. Thee doesn’t look to be much news coming today, if there is no further news on the US-China trade deal, you can safely use the indicator signals.