Market News and Charts for February 22, 2019
Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
USD/DKK
The pair failed in its second attempt to reach an all time high and to break out of the resistance line. As the United Kingdom withdraws from the European Union, Denmark was seen as the best country to replace the UK’s role in the bloc and maintain the power balance. Denmark was also the United Kingdom’s closest friend in the bloc, making the withdrawal process smoother with Denmark being the middle country between the UK and the EU. The European Union under German Chancellor Angela Merkel and French President Emmanuel Macron plans to establish a European army to stop its dependence in the US led NATO (North Atlantic Treaty Organization). The climate change causes the Arctic to melt at a faster pace, creating another territory that countries like the United States and Russia can claim. The European Union can also take part of these claims through Greenland, a Danish Realm.
GBP/NZD
The pair’s rally was halted after touching the uptrend’s previous support line, which became a resistance line after the pair broke down. The Chinese technology company Huawei might have another shot to build its 5G (Fifth Generation) infrastructure in the United Kingdom and New Zealand. The United Kingdom announced recently that the threat that US President Donald Trump was insisting were “manageable” by the British spy agency. It was followed by New Zealand with its Prime Minister Jacinda Ardern saying the country’s decision regarding Huawei was independent of the United States’ and the United Kingdom’s influence, a blow to US President Donald Trump and its former colonial master, the United Kingdom. With the Venezuelan crisis, New Zealand was the only country to abstain in choosing sides between Nicholas Maduro and the self proclaimed Venezuelan President Juan Guaido.
USD/CNH
The pair was seen to move towards its lower lows and was expected to break down of the down trend channel. Only 7 days remain before the deadline on the trade war truce between the United States and China expires, threatening an additional 15% tariff with the $250 Billion Chinese goods. However, US President Trump also said that he was willing to extend the deadline for another 60 days as progress was seen with the negotiation between the two (2) countries. Trump claims that China will be paying “billions of dollars” once the deal will come into effect. The 60-day extension in the trade war truce will calm the market and will further send the pair lower. But there was another key issue that might ignite another confrontation between the United States and China, and that was the withdrawal of the US and Russia from the INF (Intermediate-range Nuclear Forces) Treaty, which one the US’ reason was China’s growing nuclear capability.
USD/TRY
The pair stopped going down and was seen consolidating, which indicates a future upward movement. Turkey had lost its Western allies with the United States choosing the Kingdom of Saudi Arabia’s de facto leader and Crown Prince Mohammed Bin Salman (MbS) over Turkey, with the killing of Jamal Khashoggi. The European Parliament on the other hand, passed a bill that calls for suspension of Turkey’s accession to the European Union. Turkey was planning to buy Russian S-400 defense system, which further defy its allies as Turkey is a member of the NATO (North Atlantic Treaty Organization) Alliance led by the United States and with most of its members coming from the EU. The NATO Alliance fought with the USSR (Union of Soviet Socialist Republics) during the Cold War, but the Soviet Union was defeated. Some of its former territories are now members of the European Union and NATO.
