Market News and Charts for March 19, 2019
Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair was consolidating on a major resistance line beside another resistance line from the downtrend channel. The comment by New Zealand Prime Minister Jacinda Ardern stating that New Zealand will never be influenced by the United Kingdom nor the United States was a major opportunity for the European Union. New Zealand had been Australia’s shadow for centuries. Australia and New Zealand were both colonies of the British Empire, and now a major ally for the United States in Asia. However, the election of US President Donald Trump had resulted in a trade war between the two (2) largest economies in the world and had reshuffled the global order of dominance after the Trump pulled out the US from the world. The European Union had since the championed itself as the global leader. The divorce between the European Union and the United Kingdom was also seen as a marked for the separation of Australia and New Zealand.
The pair will continue its downward movement after it failed to break out of the uptrend channel support line, which acted as the pair’s current resistance line. Canada became the prize for the tag-of-war between the United States and the European Union, and between the United Kingdom and the European Union. As Trump pulled the United States out from its global leadership, the EU took over the US’s role. For decades, Canada had been a follower of the United States. As a neighbor country, it was only rational that the two (2) countries were to benefit from any move made by the US. However, the election of US President Donald Trump caused uncertainty over the relationship between the two (2) countries, which the European Union aim to win. Aside from taking the US role as a global leader, Canada will benefit from choosing the EU over the United Kingdom as the European Union was the largest trading bloc in the world.
The pair was intact on the uptrend support line and was set to retest its previous highs in the following days. New Zealand could be Canada’s model on choosing whether to prioritize the trade agreement from the European Union or the post-Brexit trading agreement with the United Kingdom. New Zealand took advantage of the opportunities with the divorce between the United Kingdom and the European Union as it was the first country to express its interest in making bilateral trade agreement with the UK, while maintaining its current trading agreement with the European Union. Its neighbor, Australia, had done the same, but was not well-received by the EU resulting to increase with Australian agricultural products. The European Union already backed Japan as it directly competes with the United Kingdom’s backed Australia to compete in leading the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership).
The pair was seen trading on a crucial resistance line, which currently holds the pair’s all-time high. The United States Congress was concerned with the proposed China extradition law in Hong Kong, which will give China a greater influence among its two territories – Hong Kong and Macau, and on the self-proclaimed independent nation of the Republic of China (Taiwan). The People’s Republic of China was also proposing to replace a three existing laws on joint ventures and foreign enterprises which covered businesses in Hong Kong, Macau and Taiwan. International Relations Experts warned that China was doing the same strategy that the United States made with Canada where it has an extradition treaty. The United States and China is yet to come up with a deal that would end the trade war between the two (2) countries. US President Donald Trump gave a 60-day extension on the trade truce without specifying the deadline.
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