Market News and Charts for August 24, 2020
Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
EUR/NZD
The euro to New Zealand dollar exchange rate may have steadied this Monday, the fundamentals are still looking rough for bears. Prices are projected to climb up towards their resistance level soon, hitting ranges last seen in early April. As of writing, the euro is seen sliding along with the pound sterling as the US dollar regains its footing in sessions. The weakness of the euro now isn’t enough to allow bearish investors to completely gain the momentum back. Most experts believe that the strategy of New Zealand to combat the coronavirus might be detrimental to the strength of the currency and the economy. The outlook for the antipodean country’s economy took major blows last week the government announced new lockdown measures to prevent the further spread of the deadly and highly contagious virus. According to reports, the measures would isolate, contain, and even eliminate the fresh new cluster of virus cases in the country.
AUD/NZD
The Australian dollar to New Zealand dollar exchange rate has been very bullish in recent months despite the strong stature of the New Zealand dollar then. Now, as New Zealand faces new concerns for its economy and the fresh clusters of coronavirus cases there, the Aussie should be able to prop up prices in the trading sessions. Prices are now widely projected to climb up higher towards their resistance level, hitting ranges last seen in October 2017. Bullish investors are getting support from the recent news about the coronavirus updates in the country. Earlier today, it was reported that Victoria state just recorded its lowest number of new confirmed cases in seven weeks. The news drove the optimism that the second wave of the virus is finally subsiding after weeks of strict lockdown rules. Today, Victoria recorded 116 new confirmed cases and 15 deaths from the coronavirus, much lower than its peak of 700 earlier this month of August.
EUR/BRL
It’s evident that the Brazilian real’s value continues to plummet against the eurozone’s single currency. The EURBRL trading pair has been very bullish in recent days, climbing to record heights. Unfortunately for the Brazilian real, it’s not expected to recover yet although today, prices are seen steady due to the slight weakness faced by the euro. Looking at it, the Brazilian real’s appeal won’t work on investors as the number of coronavirus cases in the country continues to climb drastically. Just recently, the country’s health ministry reported more than 23,000 new confirmed coronavirus cases in the country on Sunday. The Latin American powerhouse now has more than 3.6 million confirmed cases since the pandemic began and the death toll is now over 114,000 according to official reports. Based on those figures, Brazil has the world’s second-worst coronavirus outbreak after the United States and the number is sadly closing in.
GBP/BRL
As of writing, the British pound to Brazilian real exchange rate is neutral thanks to the minor road bump faced by bulls brought by the recovering US dollar. The pair’s prices are forecasted to continue rallying higher, reaching its resistance level in the first half of September. However, there is still a potential for a reversal after the pair reached its resistance due to the Brexit concerns surrounding the British pound. However, some experts argue that it won’t be enough to allow the Brazilian real push prices to pre-coronavirus outbreak ranges. The chances of a no-deal Brexit are very likely especially after the eurozone’s chief negotiator, Michel Barnier said that considering the current circumstances, it’s unlikely that the United Kingdom and European Union would agree on a trade pact. And his British counterpart, David Frost hinted the same sentiment, saying that the two sides have made “little progress” during the trade talks.
