Former Trump lawyer Michael Cohen pleaded guilty in federal court

Asia session was a little busy today, some second-liner macro news came out from the OZ economies. New Zealand’s Q2 retail sales went way above expectations and gave the momentum and the confidence that investors needed to support the Kiwi. On the other hand, the Aussie failed to rally up due to the Australian construction output data. The USDJPY went higher up to the 110.50 levels, despite the negative US dollar and Treasury yields. This week will remain, in fear of the data that are coming out especially from the European session. The key market driver will be once again the US-China talks. The NZDUSD key resistance level is at 0.6714 and the pair crossed the 10, 20,50 EMA with the sentiment looking strong up. We expect momentum during the USD FOMC Meeting Minutes.

Oil prices rose slightly on Tuesday morning as many think an Iran supply shortage could have a more significant impact on oil markets than previously thought. The fears about the global economy’s health and the recent rout in emerging market currencies, elevate the threat of lower than expected demand. Commerzbank said in a note “Prices are being supported by the prospect of lower oil supply from Iran. In addition, The American Petroleum Institute (API) report stated an extra-large oil inventory draw of 5.17 million barrels of US crude oil inventories for the week ending August 18. The U.S. Energy Information Administration report on crude oil inventories is due to be released on Wednesday. The CAC-SEP18 price is now at 5420 and the next support is at 5445.64. The 50EMA is already penetrated on the 1H timeframe and we expect to see more momentum to the upside today. On the other hand, we see that on the daily timeframe there is a key resistance level at 5494.53 and we expect the price to bounce on that level.