The G20 Summit: What currency pairs to watch?

The G20 Summit: What currency pairs to watch?

The G20 Summit will start tomorrow. Despite the fact that this is a huge event, it usually does not affect the Forex market significantly. However, this time the situation is different. Investors will pay huge attention to the meeting of US President Donald Trump and Chinese President Xi Jinping, where they are going to discuss trade issues. The meeting is expected on Saturday at 17:30 MT time.

On Thursday, the market appreciated the news that the US would not apply additional tariffs ahead of the meeting. After that, many analysts have begun to anticipate the positive outcome of the meeting. On the other hand, pessimists suggest that the negative outcome would lead to a new cold war between the US and China.

As the news from the summit will likely determine the risk sentiment in the market, we recommend you to keep an eye on the following currency pairs.

AUD/USD

The pair has successfully stuck above the 50-day SMA on the daily chart. Such positive signs as the double bottom pattern and MACD moving close to the bullish zero crossover signal the continuation of the uptrend. At the moment of writing, AUD/USD has been testing the resistance at 0.7004. If the positive news from the trade negotiations table comes out, bulls will break the 0.7004 level and target the next resistance at 0.7061. The next level will lie close to the 200-day SMA at 0.7104. In the case of a negative scenario, we will see the fall to the 0.6961 level (50-day SMA). After the breakout, support will be found at 0.6898. The next support will be placed close to the May-June lows at 0.6861-0.6827.

AUD/JPY

Of course, the AUD/JPY pair will be one of the most traded ones these days due to the safe-haven status of the JPY. Here we can see the bullish divergence on the daily chart. The next resistance for the pair lies at 75.79. If this level is broken, the pair will rise as far as the 77.01 level is reached. If traders lack optimism over the Xi-Trump talks, the pair will fall below the 75 level to the 74.09. If it is broken, the next support will lie at 73.57.

USD/CNH

The USD has been appreciating against the Chinese yuan. On Thursday, it failed to rise above the resistance level at 6.8920. If the negotiations fail, it may weaken the Chinese currency. In this case, the current resistance level will be broken and the next resistance will lie at 6.9051. From the downside, we need to pay attention to the support levels at 6.8664 (the border of the ascending trendline) and 6.85.

Gold

In case of risk aversion, there is a possibility for Gold to retest its recent highs. On the daily chart, the first resistance for the yellow metal will lie at $1,416. If this level is broken, the next resistance will be placed at $1,439 (high of June 25).  From the downside, the support levels are placed at $1,404, $1,387 and $1,364. 

Similar

How to trade the JPY?
How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

USD and GBP Traders Await Big Moves
USD and GBP Traders Await Big Moves

The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.

What to Trade on August 29 - September 2?
What to Trade on August 29 - September 2?

Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.

Latest news

Market Crash Incoming?
Market Crash Incoming?

This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.

What Currency Will Overperform?
What Currency Will Overperform?

S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera