Market News and Charts for May 22, 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/BRL
The pair broke down from a “Rising Wedge” pattern support line, sending the pair lower towards a key support line. Brazil announced that it has surpassed the 20,000 mark on coronavirus related deaths. In addition to this, the country recorded an additional 20,000 new cases of coronavirus infected citizens for the past 24 hours. This has made Brazil the second most-infected country by the coronavirus pandemic around the world. Despite this, analysts are optimistic with Brazil’s economy. President Jair Bolsonaro rejected calls to lock down the country and close its businesses, which will prevent the likelihood of the country entering a recession. Meanwhile, US President Donald Trump lost control over state governors in shutting down businesses under their jurisdiction. This has resulted in the end of America’s longest economic growth run in history. The US government and its central bank already injected trillions of dollars to the American economy.
USD/RON
The pair is expected to break down from a “Triangle Formation”. Romania will increase its dependency from the United States after the European Union calls out the country for its high deficit. In the last quarter of 2019, the US and Romania agreed to station US forces in the country. This, in turn, will increase the supply of the US dollar in the country. The US dollar acts as a reserve for Romania’s central bank, which will strengthen the country’s currency. As a result of a strong Romanian leu, Romania can introduce several fiscal and monetary measures to help the country maintain its budget. This is also beneficial for Romania as it fights the economic effect of the coronavirus. The US recently unleashed trillions of dollars in stimulus to reverse the damage done by the pandemic in the country’s economy. Despite this, the US dollar continues to surge as investors seek cheap dollars, thus, further benefits the US economy.
EUR/NOK
The pair broke down from a key support line, sending the pair lower towards the nearest support line. The European Union is facing an existential threat due to the coronavirus pandemic. Despite being the second-largest economy, cumulatively, the bloc only proposed a budget of €500 billion to help its member states to recover from the impact of the coronavirus pandemic. Another challenge in building the proposed fund is that frugal members didn’t want to share for the budget, Germany, the EU’s economic powerhouse, on the other hand, declined to shoulder most of the share. The rebellion of some EU member states might result in a divided bloc. Meanwhile, Norway is looking for investors outside Europe. Recently, a Chinese firm bought a majority stake in Norway’s largest airline company. This effectively sits the company as the second most influential owner of Norway’s airline company at 12.67 ownership.
EUR/HUF
The pair will break down from a major support line, sending the pair lower towards another major support line. Investors became optimistic after Hungarian PM Viktor Orban promised a robust rebound for the country two weeks after the lockdown ended. PM Orban said the country’s preparedness to combat ng coronavirus pandemic allows its citizens to return to their normal lives. In March, the World Health Organization (WHO) named Europe as the epicenter of the coronavirus pandemic. This forced countries in the region to lock their country. As a result, many businesses suffered significant losses. However, the Visegrad Group of Eastern Europe is expected to thrive compared to western counterpart. On the other hand, Germany and France are expected to experience a double recession this year as their economies continue to face the threat of COVID-19 and the increasing tension between the United States and China.
