Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
EUR/HUF
The pair will bounce back from a key support line, sending the pair higher towards its previous high. The European region is now recovering from the virus. In March, the WHO named Europe the center of the coronavirus pandemic. This resulted in countries in the region closing their borders and putting their country in lockdown. During this time, finance ministers of the EU member states failed to agree on an emergency fund.
The aid was supposed to help the economic recovery from the recent slump in their economies. After a month, some EU member states are now considering lifting their lockdown. Aside from that, the FMs already agreed to a €500 billion stimulus package. Germany, the leader of the Eurozone, also allotted €1 trillion to help its local economy. However, other EU member states outside the Eurozone are struggling to keep their economy afloat. Hungary’s economy is expected to shrink by 20% in Q2.
EUR/RUB
The pair will break down from a major support line, sending the pair lower towards another major support line. The oil price war between Russia and OPEC (Organization of the Petroleum Exporting Countries) has been dragging the Russian ruble in previous sessions. The war erupted after Russia turned its back against its agreement with OPEC to cut oil production and buoy crude oil prices. The decision by Russia to back out on the agreement was during the time the deadly coronavirus had infected other countries outside China.
Crude oil production is a major export product of Russia and cutting its production will hurt its economy. As crude oil saw its price sinking below its 18 years level, OPEC and G20 economies tried to create an accord to help the price of crude oil to recover. As of writing, crude oil prices are now up by 33% as the accord begins to take effect. This, in turn, will help oil exporting countries including Russia.
EUR/PLN
The pair will break down from a “Pendant” pattern, sending the pair lower towards a major support line. The coronavirus pandemic threatened to slow down one of the fastest-growing economies in the European Union. Poland was growing above the EU’s average growth prior to the lockdown. However, Moody’s warned that the country’s gross domestic product will fall in the second quarter following the outbreak. This was after the Polish government introduced a stimulus equivalent to 3% of the country’s GDP. 9% of the GDP was now allocated to counter the economic threat of the coronavirus.
What made investors and traders optimistic about the country’s economy was the lifting of the lockdown in Poland. Italy and Spain were the first two (2) European countries that lifted their lockdown. Poland, on the other hand, will begin to lift restrictions starting on Sunday, April 19. Investors and traders expected the Polish economy to recover in the coming months.
EUR/SEK
The pair will bounce back from a major support line, sending the pair higher towards the nearest resistance line. Despite the world being in lockdown, Sweden tried a new approach by letting people be exposed to the virus. The country continues with their normal lives and the same goes with their economy. The economic impact of the coronavirus pandemic in the country was also minimal in comparison to countries that imposed a lockdown. The European Union was also on its way towards recovery.
However, the impact will be catastrophic. Germany, the EU’s economic powerhouse, is projected to drop by at least 4%. The country just reported zero percent in the fourth quarter of 2019. Meanwhile, France and Italy are expected to enter a recession in the first quarter of 2020. The International Monetary Fund (IMF) and the World Bank also projected the global economy to slow down in 2020.
