Market News and Charts for January 22, 2020
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!
USD/HUF
The pair will continue its rally, sending the pair higher towards an uptrend resistance line. As the US-EU relationship falters, America has found a friend from a member state. Hungary’s populist leader has been making noise inside the bloc with his populist government. He led the rise of the Visegrad Group, an eastern bloc inside the European Union. Together, they pressured the Germano-Franco alliance in giving up some of their powers. The election of the European Commission president, Ursula von der Leyen, saw a bigger role for the V4 nations. Hungary got a vice-presidential position, holding the EU Enlargement portfolio. The country’s plan to include countries of the former Yugoslavia had created tension with French President Emmanuel Macron. Hungary is now calling for the EU to clarify its position in Iran and to move closer to the United States. The US was able to establish its influence with the Visegrad Group.
USD/MXN
The pair will recover in the following days after a series of decline in the value of the US dollar. The US House of Senate finally passes the ratified NAFTA (North American Free Trade Agreement) last January 16. This will leave President Donald Trump the only person to either pass or veto the bill. Once approved, leaders of Canada and Mexico will still need to sign the deal before it will take effect. If rejected, the US Congress will need to ratify the deal once again. Despite this optimism, Mexico is having problem on its economy. The country recently fell from the list of ten (10) most attractive countries for investment. The United States was still leading the pact while China comes second. The report for the list cited policy uncertainty and trade conflict as the reason for the removal of Mexico from the top ten (10). Meanwhile, the United States continues to hit records for its indices following the signing of the US-China phase one trade deal.
USD/NOK
The pair will continue its rally towards the “Rising Widening Wedge” pattern resistance line. Norway is under pressure from the greener European Union. Norway’s massive $1 trillion sovereign wealth fund was built from its oil production. This might force the EU to review its bilateral trade agreement with the country. Despite this, Norway seems to be moving away from the 28-member state bloc following a slowdown inside the European Union. Last year, the country said it is moving its investment from Europe to Asia and the Americas. The United States is a good investment opportunity for Norway with its indices hitting all-time highs. America, on the other hand, will need Norway geopolitically in the race to claim the untapped Arctic region. The US, Norway, Denmark (Greenland), Russia, and Canada are competing to file a petition on the United Nations to draw a line extending these countries’ territories in the region.
USD/PLN
The pair is expected to bounce back from a major support line, sending the pair higher towards an uptrend support line. Poland got backing from western countries following Russia’s accusation that Warsaw started World War II. The issue came amid fears that the US-Iran tension might start another world war with Russia backing Iran. In addition, the United States and Russia also pulled out from the 1987 nuclear pact treaty, the INF (Intermediate-range Nuclear Forces). World War II began on September 01, 1939, when Nazi Germany invaded Poland. Two (2) weeks later, the Soviet Union invaded the east of Poland. Now, Poland aligns itself more with the United States. This was after America deployed troops and made the country its recipient of the THAAD (Terminal High Altitude Area Defense) and F-35 fighter jets, both of whom were made by the United States. The US is also expanding its influence on the other members of the Visegrad Group.
