Today the pair is driven by trade deal optimism. On Friday, President Donald Trump mentioned that ‘The China deal is coming along very well’ at the NCAA Collegiate National Champions Day and on Monday there’s been reports that China has extended an olive branch and said they will tighten intellectual property rules.
The increase of tariffs is due on December 15th, tariffs remain an important stance in negotiations. China is also waiting to see if President Donald Trump will sign off on the Hong Kong Human Rights and Democracy Act, that was passed through the House of Senate on Wednesday by a vote of 417 to 1. The final word will be behind President Donald Trump, whom on Friday mentioned that ‘We have to stand with Hong Kong, but I'm also standing with President Xi’.
The economic calendar is light for the Eurozone, with two speeches schedule for Tuesday morning from ECB member Benoit Coeuré and Vice-President Luis de Guindos at 8:15 GMT . Also, on Tuesday we’ll have the release of U.S. CB Consumer Confidence, the forecast is that consumer spending will increase. New Home Sales are released at the same time, 3pm GMT , also a leading indicator for consumer confidence and spending.
Our next area of support is 1.10000 – 1.09939 61.8% Fibo, for S2 we can consider 1.09717.
Nearest resistance is located around the 50% Fibo level at 1.10293, followed by R2 at the 38.2 Fibo level, close to the top of the , which remains .