Generally, traders react positively that the American negotiators are preparing the final text of the trade agreement with China for the summit of the state’s leaders. But they don’t ready to take a big risk yet, so there is a flat on charts.
The United States and China are in the final stage of negotiations to end the trade war. There is information that Beijing is ready to reduce tariffs and other restrictions on American products, and Washington may abolish most tariffs on Chinese goods.
On the daily chart, we can see two in the row “shooting star” candles. Also, the EURUSD currency pair is under pressure of EMA50 and EMA200. The Cayman indicator moving in neutral zone. Today a new bearish wave can start. We put a target at 1.1250 support.
Brent Oil (UKOIL)
According to Reuters research, OPEC oil production fell to a four-year low in February, since the largest exporter of Saudi Arabia and other oil producers in the Persian Gulf exceeded their obligations under the agreement to reduce production. Production in Venezuela is still decaying.
On the last Friday was published Baker Hughes report. American energy companies last week reduced the number of oil rigs to a 9-month minimum. Now it is equal to 843 rigs.
Oil price stuck in a range between 38.2% fibo ($64.15) and 50% Fibo at $68.40. Growth higher than 50% fibo will be a key to a continuation of the bullish trend.
In this case, our target for long positions is $72.80.
Today we expect a few economic news. At 5 PM EET will be published Construction Spendings in the USA.
Please pay attention to AUDUSD currency pair on Tuesday’s Asian session. At 5 AM EET, the Reserve Bank of Australia can change the interest rate. At 12 AM we expect Eurozone Retail Sales statistic.
On Wednesday GDP Growth Rate will be published at 2.30 AM. The most important Canadian news is Banc of Canada interest Rate decision at 5 PM.
On Thursday Eurozone GBP Growth Rate will be published at 12 PM and Interest rate will be published at 2.45 PM. Then at 3.30 PM, ECB will hold a press conference.
So our targets for:
EURUSD – 1.1250
Brent Oil (UKOIL) – $72.80