Market News and Charts for May 20, 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!
The pair was seen to bounce back from a major support line and from the downtrend channel’s support line. Japan was seen dominating the pacific rim trade pact, the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) following Australia’s recession. Aside from that, Japan had ratified the EU-Japan Free Trade Deal, which became the largest trading zone in the world. Canada on the other hand, had been struggling to cope up with the trade war between the United States and China. Japan had advised Canada to shift its focus from China to its economy, which pave way for an increase export of Canada’s pork and beef export to Japan. The two (2) countries were also part of the Germano-Franco led “alliance of multilateralism”. Following Canada’s success was U.S. President Donald Trump’s lifting of steel and aluminum tariffs on Canada and Mexico, which was seen beneficial for Canada.
The pair will continue its steep decline after it failed to hold into a major support line, sending the pair lower towards the nearest support line. The European Parliamentary Election will be held on Thursday to Sunday, May 23-26, on which the United Kingdom was bound by law to participate. However, this participation is giving hint to analysts that the country might reverse the Article 50 or the Brexit. Before the Brexit extension, many countries had agreed to sign a post-Brexit trade agreement with the United Kingdom in case the country leave the bloc without a deal, However, the Brexit extension worries these signatories, particularly Switzerland, as they risked their relationship with the European Union. Switzerland said that the framework deal that the EU was proposing the country was already dead. The framework deal incorporates all the bilateral trade agreements that Switzerland had with the European Union.
The pair was whipsawed after it broke out from its resistance line, which eventually dropped and was expected to move lower in the following days. The European Union had punished Australia for signing a post-Brexit trade agreement with the United Kingdom while maintaining its trading relationship with the bloc. The quotas and additional tariffs impose by the bloc to Australia had contributed to Australia’s entering of recession for the first time in 27 years. With only four (4) days remaining before the voting begins for the European Parliamentary Election, the chance of Australia to fix its relationship with the bloc was seen increasing following the rise of Nationalism inside the EU, which might replace the Germano-Franco led European Union. However, all of this was still uncertain until the final result for the election comes out. Australia had recently hold its federal election last May 18.
The pair failed to breakout from the downtrend channel resistance line, sending the pair lower towards the channel’s middle support line. A high-ranking EU official had said that the United States and Russia was trying to weaken the European Union. This year, the U.S. and Russia withdrew from the INF (Intermediate-range Nuclear Forces) treaty and had both step up their game to expand their influence in Europe. Russia annexed Crimea and had lobbied Turkey to come to its side, while the United States had increased its influence in Europe with the Eastern and Nationalist bloc, the Visegrad group, which borders Russia. Following this, the European Union officials have rejected U.S. demands for automatic access to the bloc’s defense budget, arguing the money is meant only to nurse military capabilities among member countries. Most EU member states are member of the NATO (North Atlantic Treaty Organization) Alliance.
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