Market News and Charts for December 18, 2019

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/PLN

The pair will continue to move lower in the following days to reach its 6-month low. Following the huge possibility of the UK leaving the bloc on January 31 was the warning of the Polish Supreme Court. The top court said that the nationalist government’s judicial reform can put the country at odds with the EU law. This in turn, can spell a departure of Poland from the largest trading bloc. Under the bill was a resolution to expel judges that will take part in any activities with political nature. In 2017, Poland passed a law lowering the retirement of judges from 67 for both sexes to 60 years old for women and 65 years old for men. In addition, Poland was the only EU-member state to disagree with the European Union’s 2050 climate neutrality target. This EU initiative was amid the rise of the Green parties across the bloc. Poland is one (1) of the fastest growing economy in the EU and committing to the agreement will slow down Poland’s growth.

EUR/SEK

The pair is expected to break down from a downtrend channel support line. The Swedish government clashes with French President Emmanuel Macron on North Macedonia’s accession with the European Union. Moreover, the country is increasing its partnership with Eastern countries, specifically with the V4 nations. Under the new European Commission, Hungary will lead the EU Enlargement portfolio on the West Balkan. The decision by Sweden might put the country at odds with western Europe. However, as Germany, the largest economy in the bloc, experiences a slowdown, partnering with the eastern Europe countries might be the right move for Nordic countries. Germany is expected to report a disappointing figure for its Ifo Business Climate, which will further drag the German economy. European Central Bank President Christine Lagarde is also set to speak today, her second time since holding the position.

EUR/CZK

The pair is expected to bounce back from a major support line, sending the pair higher. With the V4 nations taking higher roles in the European Commission, its members are expected to gain higher influence inside the bloc. While this might be the easiest solution to unite the bloc, this could be catastrophic if the east took over the west, especially with the weakening German economy. Czech Prime Minister Andrej Babis recently met with North Macedonia Prime Minister Zoran Zaev to discuss the country’s accession to the European Union. Hungary, a V4 nation, was tasked to lead the EU enlargement portfolio under EU Commission President Ursula von der Leyen. Aside from this, Czechia and other V4 nations are turning to the United States for military support and China for economic support. However, despite the success in the country’s diplomatic relations, its PM is under fire. Thousands of people march in Prague to demand Babis’ resignation.

USD/HUF

The pair will bounce back from a major support line, sending the pair higher. The United States is cementing its influence in the European Union following the appointment of new US ambassador to Hungary. David Cornstein, just like US President Donald Trump, is a rich businessman in New York. Before his appointment, he was seen building and courting Hungary’s far-right prime minister Viktor Orban. And the time has come for him to use this influence as Hungary took bigger roles inside the European Union. Hungary is one (1) of the EU-member states that opposes the Germano-Franco leadership inside the bloc. The V4 nations are also some of the fastest growing economies in the region and a power shift from the west to the east if German economy lost its lackluster. Moreover, Trump increased the number of US military personnel in the eastern bloc and made them as recipients to its most advanced fighter jet and missile defense system.