Market News and Charts for February 21, 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!
EUR/CAD
The pair found a strong support line, which will send the pair higher in the following days and broke out of the steep down trend channel. Canada, unlike Australia and New Zealand, was neutral in taking sides between the United Kingdom and the European Union, which gave the country the ability to make a bilateral trading agreement without risking on giving up the other. As the United Kingdom was about to depart from the European Union, the two (2) countries were seen extending their influence towards Asia, with the United Kingdom signing a post-Brexit trading agreement with its former colonies, Australia and New Zealand, while the European Union ratified its trading agreement with the European Union, which creates the largest trading zone in the world. To offset its exposure to the Chinese economy, Canada must choose the 28-nation bloc, the European Union, which topped China as the 2nd largest economy.
NZD/JPY
The pair was seen to reverse back after failing to break out of a major resistance line. As Australia faced an impending election in May, New Zealand was seen taking over Australia’s role as a regional power. In the recent months, New Zealand had moved away from Australia’s shadows and had been making decisions in contrast to Australia. Japan on the other hand, was another regional power in the Asia Pacific. Japan, together with Australia, will be leading the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership), and was subject to an ally hunting between the United Kingdom and the United States. Based on statistics, however, the European Union was a bigger economy compared to the United Kingdom, and Japan was a way bigger economy compared to Australia and New Zealand, especially when it comes to military might. Japan announced last year that it was on a spending spree to buy military equipment.
USD/HKD
The pair was expected to break out of its current resistance line to reach an all time high. Last Monday, February 18, China unveiled its plan to further integrate Hong Kong and Macau, its two (2) SARs (Special Administrative Region), to mainland China. China was planning to create a Greater Bay Area and produce a cluster of world-class cities in southern China. This move was aimed to counter New York’s Wall Street in the United States. Many analysts warned that this integration will further undermine Hong Kong’s autonomy, and might be seen by other countries as just another Chinese Province. China’s influence in Hong Kong had grown in the past years, with some members of Hong Kong’s government was a part of the Chinese Communist Party. The United States and Hong Kong signed the Hong Kong Policy Act in 1992 that allows the US to continue to treat Hong Kong separately from China for matters concerning trade exports.
USD/SGD
The pair failed to break out of the resistance line sending it lower to its support line. Singapore might be a small country, but it controls the nearest route and the main shipping channel between the Pacific Ocean and the Indian Ocean. It was also one of the most important shipping lanes in the world, carrying about 25% of the world’s traded goods. The United States will need Singapore to stop China’s influence in Asia, as China already controls the biggest port in Sri Lanka after Hambantota Port defaulted on its debt to China. The construction of Hambantota Port was funded by China with its “Belt and Road Initiative”. The Sri Lankan Government signed a 99-year lease to China with the Hambantota Port to offset its debt, which many analysts called China’s move as a “debt trap” or the “$1 billion white elephant”. Singapore recently bought four (4) new submarines with more firepower and combat options.