Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
EUR/USD
The pair is expected to move higher in the following days after it bounced back from a key support line. The narrowing relationship between the European Union and the United States is visible during the NATO (North Atlantic Treaty Organization) meeting. U.S. President Donald Trump and French President Emmanuel Macron met in London to commemorate the 70th founding anniversary of the alliance. However, the celebration turned sour after Trump brings out the ISIS issue where he said most of the fighters are from Europe. He further added that the U.S. successfully ended the caliphate. Macron took a jab when he said that the fight was far from over, citing the U.S. military that are still stationed in Syria and Iraq. Furthermore, Trump is threatening to impose 100% tariffs on European cheese and wine products. Macron, a de facto leader in the EU, said he was ready to retaliate.
USD/JPY
The pair will continue to move lower in the following days after it failed to breakout from a major resistance line. The U.S. Dollar is under pressure in today’s trading session as the government is due to publish several reports. Analysts are predicting a lower job creation for the month of November using historical data from the ADP Employment report. The same thing was forecasted for the Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers Index (PMI). The weekly Crude Oil Inventories report is also expected to put pressure on the greenback. Meanwhile, investors are gaining back their confidence in the Japanese economy. Foreign investment in Japanese stocks are surging, while foreign investment in bonds are declining. This indicates that foreign market participants expect Japan to outperform the broader market in the short-term.
USD/ILS
The pair is expected to reverse back and move lower towards a downtrend channel middle support line. The United States and Israel relations is under pressure following the failure by Prime Minister Benjamin Netanyahu to form a coalition government. This failure will result in another election on which the PM might no longer be tapped by President Reuven Rivlin to form a government. Under his leadership, the U.S. backed its settlement in Golan Heights, Gaza Strip, and the West Bank. Losing Israel mean losing major position in the Middle East, Africa, and Eastern Europe. Earlier in November, Rivlin come to an agreement with Russian President Vladimir Putin to exchange prisoners. Israel will extradite the Russian hacker back to the country while Russia will release the Israeli-American woman and return her to Israel. These events are expected to drag the single currency on the last month on 2019.
USD/CZK
The pair failed to breakout from a major resistance line, sending the pair lower towards a key support line. Czechia is flirting with the United States and China. Chinese telecom giant Huawei is eyeing to build its regional hub in Czech Republic, which could potentially open Europe to China. The United States, on the other hand, is militarizing the eastern bloc amid rising threats from Russia. U.S. President Donald Trump is in London to commemorate the 70th founding anniversary of the NATO (North Atlantic Treaty Organization) Alliance. The U.S. plans to increase the spending of the trans-Atlantic group to its defense. In line with this, the Czech Republic is increasing its spending for the NATO by 10%. The NATO requires members to spend at least 2% of their GDP to the alliance. Only five (5) among the 29 members met this spending requirement. The EU, on the other hand, is planning to build its own military.
