Market News and Charts for October 02, 2019

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

USD/TRY

The pair will continue to move higher in the following days after it broke out from the “Descending Triangle” resistance line. Turkish Lira is being shorted by traders amid a recent move by President Recep Tayyip Erdogan. He said that Turkey will establish its own safe zone in Syria, defying the United States. The two (2) countries are vying to influence Syrian politics through a proxy war between the Syrian government and opposition groups. Aside from this, Turkey wants to host Iranian refugees to the country. This will dodge sanctions by the United States to Iran. Lastly, Turkey is pushing the case of the murdered Saudi journalist, Jamal Khashoggi. The journalist was killed in the Saudi consulate in Turkey. The country’s officials blamed Saudi Arabia for the killing and asked American support to pressure the kingdom. Saudi Arabia is a major political ally of the United States in the Middle East.

EUR/BRL

The pair will continue to move higher and retest its previous high. The European Union is tightening its conditional trade agreement with the Mercosur bloc following tensions between Germany, France, and Brazil. This was due to the burning of the Amazon rainforest through which EU leaders accused President Bolsonaro of not doing anything. The EU-Mercosur deal was negotiated for 20 years and only months ago did the parties agreed to a draft deal. However, this is affecting the on-going trade negotiations between the bloc. The conditional agreement is the first time that the EU incorporated animal welfare standards to tariffs. Tensions between Germany, France, and Brazil could further get complicated with the United States. The agreement is seen to benefit the EU more as it tries to protect globalization from the rising protectionism trend.

USD/BRL

The pair is expected to bounce back from a major support line, sending the pair higher toward its 47-month high. Following the tensions between the      European Union and Brazil, the later found an ally from the United States. The tension surrounds on the Amazon fire issue within which EU leaders blamed Brazilian President Jair Bolsonaro. On 01 June 2017, the newly elected president, Donald Trump, withdraw from the 2015 Paris Climate Agreement. Under the agreement, signatory countries will need to commit to the long-term goal of increasing the global average temperature to 2%. Aside from this, the two (2) leaders of the Americas were seen increasing their cooperation. Sons of the two (2) leaders were appointed as ambassadors to each country, which further integrated them politically and economically. Brazil had even offered its soil to host U.S. military bases.

USD/RON

The pair will continue to move higher in the following days to reach its 34-month high. The United State and Romania continued to cooperate after the fallout of the U.S. Turkey relationship. The two (2) countries recently agree on nuclear cooperation amid the installation of THAAD in the country. The installation of THAAD (Terminal High Altitude Area Defense) is seen as an effort from the U.S. to counter Russia. Aside from this, Romania has become more cautious in dealing with China amid strong ties with the U.S. China is looking to penetrate the European market with its 5G technology. However, the U.S. had already made some steps to prevent China from installing 5G technology. The nuclear technology exchanges will further position the U.S. in the region. Romania is the nearest NATO (North Atlantic Treaty Organization) ally in the Black Sea.