During the European session, we anticipate the release of the latest quarterly average earnings report today at 11:30 MT time. According to experts, it will reach 3% in this quarter, a healthier level than 2,7% in the previous quarter. This data will distract the attention of traders from the continuation of Brexit uncertainties.
In other news that is happening in the world right now, Italy is expected to resubmit its unfortunate budget today. Last month the European Commission rejected its budget, due to the lack of deficit control. However, Italy made a very little change to it. So, if the European Commission will change its mind today, watch EUR/USD turns bid.
As we can see from the chart, yesterday a strong US dollar pushed the pair below the psychological level at 1.13 and made it fall below the next support at 1.1265. A series of lower highs, as well as trading below 50-months MA, created a bearish scenario for the pair. If the Italian budget to be approved today, the pair will have a chance to cross 1.1265. The next resistance lies at 1.13. In case of more uncertainties, the next support lies at 1.1197.
Now let’s look at the GBP/USD chart. Yesterday strong US dollar in combination with never-ending Brexit tensions made the cable to form a gap and test the support at 1.2817. Today’s release can help the British pound to stick above the resistance 1.2896. However, more negative news on Brexit can push the pair below 1.2817. Follow the news attentively.
During the Asian session, Chinese trade war negotiator announced his plans on visiting the US for trade talks. He attempts to ease rising trade tensions ahead of a meeting of Chinese president Xi and US president Trump.
As a result, the Australian dollar bounced from the support at 0.7171 and is heading towards the resistance at 0.7237. If the bullish pressure continues, the aussie can stick above 0.7237. The strong USD can pull the pair below the support at 0.7171. The next support for the pair lies at 0.7117.
