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European Council President Donald Tusk said after meeting with Chinese Premier Li Keqiang that " the world we were building for decades" has brought about " peace for Europe, the development of China, and the end of the Cold War between the East and the West." He emphasized that it is "common duty of Europe and China, America and Russia, not to destroy this order, but to improve it." He urged "not to start trade wars, which turned into hot conflicts" but "to bravely and responsibly reform the rules-based international order."

He called on China, Trump and Putin to start the process from reform of the WTO as "there is still time to prevent conflict and chaos." He pointed to the "dilemma" of "whether to play a tough game such as tariff wars and conflicts in places like Ukraine and Syria, or to look for common solutions based on fair rules."

Tusk also reiterated that the EU is committed to "modernisation of the WTO" and "propose a comprehensive approach to improving, together with like-minded partners, the functioning of the WTO in crucial areas." And he called for "like-minded partners" to work together to "strengthen the WTO as an institution and to ensure a level playing field."

Full speech here.

EUR/USD

The EUR/USD showed a strong bullish pinbar candlestick pattern at support, which could confirm the completion of wave X (pink) and the start of a larger wave Y (pink).

Daily chart:

The EUR/USD seems to be building a bearish ABC (purple) correction within wave B (red).

Weekly chart:

The EUR/USD has probably completed wave A (red) and price is now most likely retracing to the Fibonacci levels of wave B (red).

Monthly chart:

GBP/USD

The GBP/USD is showing a bullish pinbar on the daily chart as well, just as the EUR/USD. This could indicate the end of a wave X (purple) and the start of a larger bullish correction within wave 2 (pink).

Daily chart:

The GBP/USD has probably started the bearish wave 5 after price has completed a wave 4 (light purple) correction.

Weekly chart:

The GBP/USD bearish breakout could see the continuation of the wave 5 (purple) whereas a bullish break above resistance (red) could indicate that a wave C has been completed at the bottom.

Monthly chart:

USD/JPY

The USD/JPY broke above the resistance trend line (dotted red) and the bullish breakout is now moving towards the Fibonacci targets.

Daily chart:

The USD/JPY could be building an ABCDE triangle (light purple) within wave B (red).

Weekly chart:

The USD/JPY is in the wave D (light purple) of the triangle pattern.

Monthly chart:

In the post meeting joint conference with Chinese Premier Li Keqiang, European Commission President  Jean-Claude Juncker expressed his concerns that  European Foreign Direct Investment into China have hit a low in 2017, at only around EUR 6B. That's massive difference to Chinese investment in EU at EUR 30B. And Juncker pointed out "this gap reflects a concern amongst our investors on the regulatory and administrative burden that foreign companies sometimes have to face in China."

Nonetheless, Juncker hailed the "first exchange of offers" on the  Comprehensive Agreement on Investment with China. He saw that as "an important step". That it's " only the first one" and "what we need is an Agreement that fulfils our common ambition and gives investors on both sides predictable and long-term access to our respective markets." Juncker emphasized to China that "actions are more important than words.

Full speech here.

Early Mondays are notorious for range bound market movements. However, some markets might turn the trend into bullish or bearish the same day. That could be the case with the DAX30. 12460-12498 is the POC zone. The price might bounce from the zone on a retest. If the retest doesn’t happen watch for a retracement trend line break (blue dotted line). A close above 12571 should target 12615. If the price make a strong momentum or 4h close above 12615, next is 12684. A move below 12405 might turn the price bearish targeting 12929.

W L3 - Weekly Camarilla Pivot (Weekly Interim Support)

W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)

D H4 - Daily Camarilla Pivot (Very Strong Daily Resistance)

D L3 – Daily Camarilla Pivot (Daily Support)

D L4 – Daily H4 Camarilla (Very Strong Daily Support)

POC - Point Of Confluence (The zone where we expect price to react aka entry zone)

EU and China issued a joint statement reaffirming their "commitment to deepening their partnership for peace, growth, reform and civilisation, based on the principles of mutual respect, trust, equality and mutual benefit, by comprehensively implementing the EU-China 2020 Strategic Agenda for Cooperation". The statement is released after meeting of European Council President Donald Tusk, European Commission President Jean-Claude Juncker and Chinese Premier Li Keqiang in Beijing.

In the statement, it's noted that both sides are "strongly committed to fostering an open world economy, improving trade and investment liberalisation and facilitation, resisting protectionism and unilateralism". And, they "firmly supported the rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system with the WTO as its core". At the same time, they pledged to work on reform of the WTO and "establish a joint working group on WTO reform, chaired at Vice-Ministerial level, to this end.".

The EU "took note of China's recent commitments to improving market access and the investment environment, strengthening intellectual property rights and expanding imports, and looks forward to their full implementation as well as further measures". Both sides pledged to ensure "a level playing field and mutually beneficial cooperation in bilateral trade and investment". "Ongoing Investment Agreement negotiations" are seen as a "top priority". And, they agreed to "accelerate the negotiation of the Agreement on the Cooperation on, and Protection of, Geographical Indications" and hoped to conclude it by next meeting on July 25-27.

Both sides also recalled that the Joint Comprehensive Plan of Action (JCPOA) Iran nuclear deal is a "key element of the global non-proliferation architecture and a significant diplomatic achievement endorsed unanimously by the UN Security Council in its Resolution 2231." And the "reaffirm their commitment to the continued, full and effective implementation of the JCPOA."

Full statement.

Pivot (invalidation): 0.7400

Our preference Long positions above 0.7400 with targets at 0.7430 & 0.7445 in extension.

Alternative scenario Below 0.7400 look for further downside with 0.7385 & 0.7370 as targets.

Comment The break above 0.7400 is a positive signal that has opened a path to 0.7430.

Pivot (invalidation): 1.3175

Our preference Short positions below 1.3175 with targets at 1.3145 & 1.3120 in extension.

Alternative scenario Above 1.3175 look for further upside with 1.3195 & 1.3220 as targets.

Comment A break below 1.3145 would trigger a drop towards 1.3120

Pivot (invalidation): 1.0000

Our preference Long positions above 1.0000 with targets at 1.0040 & 1.0070 in extension.

Alternative scenario Below 1.0000 look for further downside with 0.9970 & 0.9945 as targets.

Comment A support base at 1.0000 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 112.25

Our preference Long positions above 112.25 with targets at 112.80 & 113.00 in extension.

Alternative scenario Below 112.25 look for further downside with 111.90 & 111.60 as targets.

Comment The RSI calls for a new upleg.

Pivot (invalidation): 1.3190

Our preference Long positions above 1.3190 with targets at 1.3245 & 1.3290 in extension.

Alternative scenario Below 1.3190 look for further downside with 1.3150 & 1.3115 as targets.

Comment The RSI is bullish and calls for further upside.