27.06.201916:29 Forex Analysis & Reviews: EURUSD: The final stage of the discussion of the US-China trade agreement will take place on Saturday. Iran has not yet violated the limits of the nuclear deal

The euro is gradually strengthening, despite the weak data on sentiment in the eurozone economy. Support for risky assets provides news on the trade agreement between the US and China.

I have already said that yesterday the US Treasury Secretary stated 90% of the readiness of the agreement between the United States and China. Today, official sources in China noted that the Chinese leader will provide Trump with the terms of the settlement of the trade conflict, and one of the conditions is the lifting of the ban on the sale of Huawei's technology. Also, the Chinese authorities want the US to abolish fines. All this will be discussed by Xi and Trump at lunch, which will be held this Saturday. It is likely that the outcome will be an indication of the possibility of reaching an agreement or worsening trade relations.

As noted above, the sentiment of eurozone companies declined due to the manufacturing sector, which continues to show a slowdown against the backdrop of trade conflicts and weak global growth. Also, problems remain with the issue of the Brexit transaction, which hinders exports.

All this seriously affects the trust of companies that look to the future with pessimism.

According to the European Commission, the sentiment indicator in the eurozone economy fell in June 2019 to 103.3 points from 105.5 points in May. The confidence of the companies dropped to -5.6 points from -2.9 points in May. All this will necessarily affect the growth of the economy, as it will slow down investment, and also slow down the creation of jobs and the hiring of new workers.

As for the technical picture of the pair EURUSD, it remains unchanged compared with the morning forecast. The bulls are still clearly resisted, and further short-term downward correction will be the envy of a major support level of 1.1350. Only then can we expect the demolition of a number of stop orders and a more rapid decline in the trading instrument in the area of 1.1317 and 1.1280. However, it should be understood that if the level of 1.1350 will continue to hold by all means, then the emerging technical model may lead to a new, larger growth of risky assets, and a breakthrough of the resistance of 1.1410 will be a signal to open long positions in the expectation of updating the highs in the area of 1.1490 and 1.1570.

Today, there is also news that, despite significant political and economic disagreements between Iran and the United States, which could lead to a military conflict, Tehran has not yet violated one of the key limits set in the 2015 nuclear agreement. This was announced today by European diplomats, which leaves a chance to prevent the collapse of the deal, from which only the United States has come out.

Let me remind you that last week, Iran declared that by June 27, it would exceed the limit on the volume of enriched uranium, amounting to 300 kg, but Tehran is still close to the limit but did not go beyond it.

If in the near future, the EU does not receive news on the new mechanism of financial conditions for cooperation with Iran, bypassing US sanctions, which was announced earlier this week, the limit is likely to be broken and the situation will seriously deteriorate.