Market News and Charts for December 26, 2019
Hey traders! Below are the latest forex chart updates for Thursday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
USD/CZK
The pair is expected to move lower in the following days to form the “Head and Shoulder” formation. 2019 saw the rise of the V4 Nations in the face of weakening German economy. The year could also mark the transition of economic power from Western Europe to Eastern Europe. The members of the Visegrad Group are some of the fastest growing economy in Europe. This strength had pushed the newly elected European Commission President Ursula von der Leyen to prioritize the group in forming his commission. Aside from the Western Europe, the US is trying to play a vital role in establishing the Eastern Europe. The United States shifted its military efforts from the Middle East and Turkey to the Visegard group. On December 14, the United States agreed to sell its H-1 helicopters to Czech Republic. The US has also deployed F-35 fighter jets and THAAD (Terminal High Altitude Area Defense) in the region.
EUR/HUF
The pair is expected to reverse back in the following days, ending a possible “Triple Top” pattern. Nationalism has been the one (1) of the most popular political word in Europe in 2019. This was amid the Brexit deadline originally set in March 31 and has since been moved to different dates with the latest being on January 31, 2020. The Brexit has sparked Nationalism across the world following accusations from Members of the Parliament (MPs) that Britain was losing its culture amid migrations from other EU-member states and influx of immigrants from the Middle East and Africa. Hungary, the leader of the eastern and nationalist bloc Visegrad group, has also been hitting at the Eastern Europe back. Hungarian Prime Minister Viktor Orban has been dubbed as Europe’s Donald Trump amid his populist policies. Despite several accusations from Brussels, Orban continue to maintain his popularity inside Hungary.
EUR/GBP
The pair will fail to breakout from a downtrend resistance line, sending the pair lower toward its previous low. European Commission Vice-President Franciscus Cornelis Gerardus Maria Timmermans wrote an emotional message wherein he expressed his sadness with the United Kingdom’s decision to leave the European Union on January 31. The transition will take until December 31, 2020 if a Brexit deal is approved between the two (2) parties. Nevertheless, the withdrawal is still seen as pivotal for the European Union and the whole world with the rise of populism and nationalism. Analysts and investors see the Brexit as a double-edged sword. While this will remove the third largest economy in Europe from the bloc, the Brexit will open new uncertainty over the UK politics and economy. On the other hand, the phase one trade deal between the United States and China might put the EU next in line for a US trade war.
EUR/JPY
The pair will continue its upward movement in the following days towards a major resistance line. The decline was attributed to the disappointing retail sales in Japan after it dropped to negative 2.1%, which is lower from the negative 1.7% that analysts were expecting. This put figures on the report at its second consecutive negative results. The report is a foremost indicator of consumer spending, which accounts for most of the overall economic activity. As Japan struggles to propel its economic activity, the result for its retails sales is seen as negative for Japan’s economy. On the other hand, the other reports from Japan saw an improvement either from their previous results or from analysts’ expectations. The recent signing of phase one trade deal between the United States and China and the win of the UK Conservative Party during the recent election has also affected the appeal of safe-haven assets like the Japanese Yen.
