The pair was seen to further stabilize. Donald Trump and Xi Jinping are expected to meet in a sideline meeting during the G20 meeting in Argentina next week. During the APEC Summit, Vice President Mike Pence had warned the ASEAN to be skeptical in accepting grants and soft loans from China, as he considered this as a debt trap. China on the other hand, hit back and told ASEAN to reject isolation and promote multilateralism across the region. Histogram, EMA’s 13 and 21 are all stable, while MA’s 50 and 200 shows a wide gap.
The pair will continue to decline as part of the normalization in the relationship between the United States and Turkey. Turkish Lira is rising with the news that Trump had sparred Turkey, along with countries that are heavily reliant with Iranian Oil, on its sanction against Iran. This had made the Crude Oil Futures to enter the Bear territory in just 6 weeks. On the issue with the killing of the journalist Jamal Khashoggi, Trump declined to listen to the recorded audio of the killing, and told the media that CIA’s finding that Mohammed bin Salman (MbS) was behind this, was pre-mature. Histogram, EMA-13, and EMA-21 supported the down trend.
The pair is expected to fall down after the completion of the “Cup and Handle” formation. The US Dollar is expected to weaken against the Brazilian Rial after its economy was seen declining with the report that global growth will not just weaken, but crippled, following the trade war happening between the United States and China. NASDAQ already entered the bear territory while SP500 was points away from the bear territory. The weakening of the US Dollar is a good news for Emerging Economies, particularly BRICS (Brazil, Russia, India, China, South Africa). Histogram, and EMA’s 13 and 21 was pointing to the decline of the pair.
The pair might continue to decline, if the crossover between MA-50 and MA-200 will continue to a “Death Cross”. The European Union was surrounded by conflicts, internal and external. EU’s Leadership, Italy’s Budget, EU’s Nationalism, Trade War and EU’s Militarization are among the concerns. But they are more worried with the growing threat of Russia’s militarization with its border with Norway, an EU and NATO (North Atlantic Treaty Organization) member. Histogram shows that people are still bearish within the short term, while EMA’s 13 and 21 shows a widening gap that might signal a more bearish stance from traders and investors.