Market News and Charts for January 03, 2020
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/HKD
The pair is expected to breakdown from a major support line, sending the pair lower toward its 21-month low. The United State is losing control over Hong Kong as protests surged to its highest in six (6) months in December. The US and China had already signed a phase one trade deal, which could end the year-long trade war between the two (2) largest economies in the world. However, analysts and investors were skeptical that the trade deal could resolve the spat between the two (2) countries especially that protests in Hong Kong continues. In relation to this, China halted the planned cross-border listing between the Shanghai and London stock exchanges due to political tension with the United Kingdom. The same fate could happen between the United States and China if the trade deal between the two (2) countries failed. The US threats Hong Kong economically as separate from China. However, China is exploiting this to its advantage.
EUR/DKK
The pair will fail to breakout from a major resistance line, which will send the pair lower towards a major support line. The Eurozone is expected to continue its record from December for its Unemployment report today, January 03. This was amid the holiday seasons on which productivity and employment was at its highest. Despite this, countries using the euro as a currency were having a hard time to reach their inflation targets to propel their economies. A below-than-expected result for inflation will outweigh any positive results from its employment reports. In other news, Denmark is leading the prosperity of the European Union when it comes to green technology. Margrethe Vestager was reappointed as European Commission’s Vice President for a Europe fit for the Digital Age following her first position as Competition Minister. Moreover, Denmark said its wind power accounts for 47% of the country’s electricity last year.
EUR/TRY
The pair is expected to reverse back from its resistance line to its support line. Recent poll in Turkey showed 60% of Turkish people were in favor of Turkey’s accession to the European Union. This was amid the falling relationship between Turkey and the EU-member states. Some EU countries condemns Turkey’s move in Syria and its close ties with Russia. This has led to the slowdown in the accession talks between the two (2) parties. Turkey is a full-membership candidate of the EU since December 12, 1999. As a country connecting Asia, Africa, and Europe, the country has been the bridge for refugees and the EU is paying the country to prevent the influx of immigrants inside the bloc. However, Turkey is also using this as a threat for the EU that it will open its borders to refugees if the bloc will not respond to its demands. The EU accused Turkey of human rights violations and deficits in the rule of law.
GBP/AUD
The pair is expected to bounce back from the “Rising Widening Wedge” pattern support line. The United Kingdom is expected to recover this year following the country’s economic slowdown in the last three (3) months of 2019. The slowdown was bought by the uncertainty over the UK election and Brexit. But as the Conservative Party wins during the recent election, analysts and investors gained clarity of the future of the United Kingdom. Meanwhile, Australia’s economy is expected to be affected by on-going wildfires in the country. In the state of New South Wales alone, 900 houses have been destroyed. In other news, Australian workers could travel to the United Kingdom with no visa under the post-Brexit trade agreement between the two (2) countries. Britain is set to leave the largest trading bloc on January 31 and the win of UK Prime Minister Boris Johnson is expected to drag the UK out of the EU with or without a deal.
