Market News and Charts for July 08, 2019

Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!

EUR/DKK

The pair found a strong support line after a steep decline, which will send the pair higher towards the nearest resistance line. On June 27, Mette Frederiksen assumed the Danish Premiership to succeed the outgoing Prime Minister Lars Løkke Rasmussen as the Prime Minister and their party’s leader. However, former PM Rasmussen is not ready to retire yet and had voiced his ambition to become the new President of the European Commission. Denmark was seen as a close ally to the United States, which worries the Germano-Franco alliance as the country will replace the United Kingdom in the trilateral balance once the UK officially leaves the European Union until October 31. In line with this, the alliance was pushing Ursula von der Leyen, a German politician, to become the next president of the EU commission, which will retain Germany’s leadership inside the 27-member state bloc.

EUR/TRY

The pair was expected to recover after it broke down from a major support line, sending the pair higher towards a major resistance line. A Turkish ship planning to drill for oil and gas close to Cyprus sparks tension between Turkey and the European Union. EU leaders warned Turkey to end its drilling in waters around the island or face action from the bloc. Cyprus is being divided between Greece Cypriot and Turkish Cypriot, with Turkey claiming that the majority of the Northern Cyprus are descendant of Turkish during the invasion of the Ottoman Empire on the island. Turkey is currently negotiating its accession in the European Union. However, before the commencement of the European Parliamentary election, the EU Parliament held a non-binding vote to suspend Turkey’s accession in the European Union. Now that Germany’s European People’s Party (EPP) won the election, Turkey’s accession will have a lower chance.

GBP/AUD

The pair was seen to continue its steep decline, sending the pair lower towards a major support line. Australia was seen to be further dependent on the United Kingdom after Canada received a green light from the European Parliament to conduct a bilateral trade agreement with the bloc. Australia signed a post-Brexit trade agreement with the UK, while maintaining its existing trade deal with the European Union. This had caused the 27-member state bloc to increase Australia’s tariff quotas. The possibility of the integration of former British colonies through the CANZUK (Canada-Australia-New Zealand-United Kingdom) was seen imminent after the UK officially leaves the EU until October 31. The two (2) countries are also in an economic turmoil with Australia entering a recession for the first time in 27 years, while the United Kingdom was expected to have a recession in case of a “no-deal Brexit”.

GBP/CAD

The pair will continue its steep decline after it broke down from a major support line, sending the pair lower to its 22-month low. The United Kingdom received hope after Canada halted its negotiation to ratify its free trade deal with the European Union. This was following UK’s publication of temporary tariff rates, which would grant tariff-free access to 87% of imports in case the country ended up in a “no-deal Brexit”. Canada is looking forward to benefit from these temporary tariff rates as the country suffered from the increased tariff from the United States. The United Kingdom hasn’t negotiated trade since 1972 with the European bodies acting on behalf of its member states. The temporary tariffs are meant to encourage trades with other countries who haven’t signed a post-Brexit trade agreement with the country. This will prevent an economic crash with the British economy if Brexit negotiations failed.