The pair was seen to further go down. The United Kingdom already made a negotiation deal that was approved both by the United Kingdom and the European Union. However, Prime Minister Theresa May was struggling to get an approval for the deal within the UK Parliament with Soft Brexit, Scotland, and Northern Ireland, still among the MP’s major concerns. The focus of the United States at this moment was its economy. Major US indices had been slumped into correction territory. A stronger US Dollar would not be favorable for the pair. Histogram and EMAs 13 and 21 was showing a slower momentum from the selling pressure of investors and traders.
The pair was whipsawed on the 3rd attempt to break its support. Just like the UK, The European Union was also struggling from internal and external challenges concerning EU’s Leadership, EU’s Election, Italy’s Budget, Rising Nationalism, and EU’s Militarization. Although the United States is isolating itself, it became more vocal with the aggression of China and Russia, and warns countries not to take grants and loans from the two countries as it will be a debt trap. Histogram was starting to fall while EMAs 13 and 21 was showing a reversal.
The pair was on its way to try to break the resistance for the 3rd time. The United States didn’t only wage a trade war with its enemies like China and Iran, but also with its allies like Mexico, Canada and Japan. Trump had bought Japan into the negotiating table after data shows trade imbalances with Japan car import to the US. In return, Prime Minister Shinzo Abe met his Chinese counterpart President Xi Jinping, to start a bilateral trade agreement. But Japan was struggling with the BoJ’s (Bank of Japan) ballooning asset due to its fiscal policy of buying Government’s bonds and treasuries, which exceeds Japan’s GDP. Histogram and EMAs 13 and 21 was showing price reversal.
The pair will try to break the support of the uptrend channel for the 6th time. The recent increased in the pair was due to a stronger stance of the United States against the aggressiveness of China. During the APEC (Asia Pacific Economic Cooperation) Summit, US President Mike Pence strongly urged countries not to accept grants and soft loans from China as this will result to debt trap. It is noteworthy that after the ratification of the USMCA (United State, Mexico, Canada), Canada shifted to China as a bilateral trade partner, which could trigger Article 34.6 of the USMCA, which might result in its dissolution. Histogram was mixed by investors sentiments while EMAs 13 and 21 crossed over.