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!
USD/RON
The pair will bounce back from its current low, sending the pair higher towards a major resistance line. The US Congress is divided on the proposed stimulus bill with the Democrats wanting to send the money directly to the local governments. On the other hand, the Republicans want to distribute the stimulus to individuals through checks. The differences between the two (2) parties have also resulted in the stimulus being slashed by more than half of the initial $2.2 trillion bill. The revised version of the proposal was now $908.0 billion. With only 16 days remaining before the new year starts, analysts are not expecting a stimulus to be passed anytime soon. Another possibility that might help the US dollar to recover its losses against other currencies was the growing concern over the sustainability of the US stock market. Tech companies have rallied during the pandemic due to optimism and not based on its profitability.
EUR/NOK
The pair will bounce back from its current support level to form a “Double Bottom” formation. The EU had impressive results on Monday, December 14. Industrial production grew by 2.1% in October, reversing the downward trend for the past four (4) months. The result from September was 0.1%. Meanwhile, the report contracted by -3.8% on an annual basis. However, looking at the historical chart, the decline in October YoY was the smallest for the past eight (8) months, indicating a continued recovery of the EU bloc from the pandemic. Just like the EU, France had a better-than-expected result from Tuesday, December 15. The consumer price index report MoM and YoY both expanded by 0.2% compared to the 0.0% growth for the month of October. All data from this week’s report were from October, a time when COVID-19 cases spiked. Despite this, analysts advise investors to remain cautious with EUR following the hard lockdown in Germany.
EUR/HUF
The pair will retest a major resistance line in coming sessions. Hungary and Poland agreed to a German brokered deal with the European Commission. This ended the four (4) week stalemate in the $2.18 trillion 2021-2027 budget for the EU member states. The two (2) eastern European countries accepted the concessions made by other leaders which gave them a bigger share in the budget. Although the deal will be beneficial for these countries, their currencies are expected to underperform as the euro denominated budget will enter their local economy. Hence, the deal was a success for the single currency. The €1.8 trillion budget comprises €1.1 trillion member states’ budget while the remaining €750 billion was specifically allotted as COVID-19 recovery fund. In addition to solving this internal conflict, Brussels and Britain agreed to extend negotiations even after the Brexit transition ends by January of the next fiscal year.
EUR/RUB
The pair will continue to move higher in the following days towards the 100.00 price zone. A new hacking incident in the US government agencies on Saturday, December 12, points out to Russian government’s hacking group known as APT29 or Cozy Bear. The attack was believed to target COVID-19 researches following the FDA’s green signal to start the procedure of the emergency use authorization (EUA). The same group was claimed to have attacked the US State Department and the White House during the Obama administration. The implications for this was a possible retaliation by the US government under Joe Biden. President-elect Joe Biden could drag its allies into putting another economic sanction to Russia. As for Russia’s economy, it is still underperforming against its Asian peers. The country’s trade surplus has declined to 6.44 billion in October, a notable decline from September’s 10.05 billion result.
