Market News and Charts for May 31, 2019
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!
The pair was expected to break down from a “Rising Wedge” pattern support line after it failed to break out from a major resistance line. The politics inside the European Parliament was just starting out after the win of the European People’s Party (EPP) during the recent election had brought with it Hungarian Prime Minister Viktor Orban’s Fidesz party. However, the Fidesz party might join new grouping inside the parliament if the center-right EPP doesn’t line its agenda on each countries’ national interest. This will give PM Orban the ability to influence the decisions inside the EU Parliament. In the recent months, the relationship between the European Parliament and Hungary have soured after PM Orban accused the Members of the Parliament of aligning itself to the Germano-Franco Alliance’s vision for the bloc, which had led Hungary and the other members of the Eastern and Nationalist bloc, the Visegrad Group, to turn to the U.S.
The pair was seen to continue moving higher in the following days towards a major resistance line. Following the win of Germany’s European People’s Party on the recent election, the Germano-Franco alliance had cemented its leadership throughout the European Union, which means that the EU Army was expected to be establish soon. Following the withdrawal of the United States and Russia from the 1987 nuclear pact treaty, the INF (Intermediate-range Nuclear Forces), EU’s two (2) de facto leaders – German Chancellor Angela Merkel and French President Emmanuel Macron – made a decision to strengthen its defense despite being a member of the NATO (North Atlantic Treaty Organization) Alliance. The Germano-Franco alliance fear that the U.S. might withdraw from the alliance following the failure of most members, particularly to those from Europe, to fulfill its defense budget as part of its GDP.
Th pair was expected to breakdown from the uptrend channel support line, sending the pair lower towards its previous lows. In May, Poland celebrated its 15th year membership in the European Union. However, the celebration turns to an election, which will spell out whether the EU will face the future divided or complete. The rise of Populism and Nationalism inside the European Union triggers the division among EU-member states. The division was further caused by the backing of the United States, who in the recent months had lobby the Eastern and Nationalist bloc, the Visegrad group, following the fallout in the relationship between the United States and the European Union. The Visegrad group needs the defense from the U.S. against Russia’s aggression on its border. Poland had even offered to host U.S. military bases on its country to be named after U.S. President Donald Trump.
The pair failed to sustain its strength after it touched a major resistance line, which will send the pair lower towards the uptrend support line. The European Commission has determined that Czech Prime Minister Andrej Babis is in conflict of interest because of his business empire placed in trust funds, which can result to Czech Republic losing some EU funding as a result. This will further push the country away from the European Union, especially that the Germany’s European People’s Party (EPP) had once again won the majority in the European Parliament. The Visegard Group comprising of Hungary, Poland, Czech Republic, and Slovak Republic, was seen siding with the United States as they are hoping for a U.S. protection against Russia, particularly that the United States and Russia had already pulled out from the nuclear pact treaty, which prevents the two (2) powers in placing missiles that can reach Europe.
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