Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
GBP/CHF
The British pound continues to trade sideways and the GBPCHF trading pair is expected to drop towards its support level as the stubbornness of both sides – the EU and the UK – fuels bearish investors. Prices are expected to reach their lowest level since March. It was recently reported that Britain believes that a post-Brexit trade deal could still be snatched with the European Union by next month. Reports say that the British Prime Minister’s spokesman said that the UK’s negotiating team would continue to “plug the gaps” as they go on to their seventh round of trade deal talks with the EU on Brussels. As of writing, the main division that prevents the two sides from reaching a goal is fishing rights, competition rules, and how the trade deal will be enforced. Britain has already ruled out the possibility of extending the deal until December, which really concerns investors and ultimately prompting them to seek shelter on safe-haven assets like the Swiss franc.
EUR/AUD
The euro to Australian dollar exchange rate is stuck in a tight ascending channel and bearish investors are finding no luck to pull the momentum in their favors. The pair’s prices are bound to inch their way towards their resistance level in the coming weeks, hitting levels last seen in early April. Earlier this Tuesday, bearish investors were disappointed by the somewhat dovish stance of the Reserve Bank of Australia, causing the antipodean currency to slow down in the sessions. RBA governor Philip Lowe has recently addressed the concerns of investors and lawmakers about negative rates. Lowe appeared in front of the Australian House of Representatives standing committee on economics and was asked about the RBA’s reluctance to further lower their rates into negative territories. The RBA governor clarified that the bank has not yet ruled the possibilities of negative rates but emphasized that a move would be “extraordinarily unlikely”.
EUR/USD
Despite the optimism for the greenback in the past few days, bears are still no match for the strength of the single currency. As of today, the pair is seen advancing higher towards its resistance level. Once it hits that mark, it could face price ranges last seen in May 2020. Some experts may argue that the limited gains of the euro are signs that the exchange rate may face a pullback. However, considering that the fundamentals behind the greenback are weaker, it could also be argued that it doesn’t have enough strength for such a pullback. The greenback is extending its fall this Tuesday after a triple blow of receding yields, lackluster results from the US economy, and the slow demand for safe-haven assets caused by the broad selling pressure. Another factor that’s affecting the exchange rate’s direction is the stock markets in the United States and Europe which triggers the risk-on factor in the global market, strengthening the euro along the way.
USD/JPY
The Japanese yen recently stops the US dollar from further rallying, forcing the pair to take a sharp U-turn in the trading sessions. Now, prices are heading downwards towards their support level, bring prices to ranges last encountered in March. It’s a widely known fact that the US dollar is alarmingly weak now thanks to the fundamentals surrounding it. Meanwhile, bearish investors are gathering strength from the news that the benefits of “Abenomics” were unraveled by the coronavirus pandemic and its impact on the country. Since Japanese Prime Minister Shinzo Abe’s rise in power, he ushered in an era of bold policies in Japan which are referred to as “Abenomics”. The plans helped revive the country’s economy by boosting exports, jobs, and corporate profits. To deal with the pandemic’s impact Abe’s government has deployed a massive stimulus package that is worth around $2.2 trillion which is almost the size of its whole economy.
