Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
USDDKK
The pair will continue to move lower in the following days after it was whipsawed during its breakout from its resistance line and broke down from 50 MA. Denmark recently elected Mette Frederiksen as its prime minister, which indicates another transition for the country who was seen to be the next power inside the European Union. Denmark was seen to replace the United Kingdom in the trilateral power balance along with Germany and France. Denmark was the closest ally of the United Kingdom among the other member states and was seen to be pro-U.S. This will affect the future of the EU who was seen struggling to contain nationalism and populism inside the bloc. On the other hand, this will be an advantage to the United States following its narrowing relationship with the Germano-Franco alliance. Histogram and EMAs 13 and 21 was expected to crossover in the following days.
GBPNZD
The pair was expected to break down from a major support line, sending the pair lower towards another major support line. For the first time since its accession to the European Union in 1973, the United Kingdom will be arranging a bilateral trade agreement with countries who signed a post-Brexit trade agreement. The first country to sign the said agreement was its former colony, New Zealand. This will give New Zealand the trading edge against the UK, particularly that the country still maintains a trade agreement with the European Union. Following the withdrawal of the United Kingdom from the EU, the proposed integration of the CANZUK (Canada-Australia-New Zealand-United Kingdom) or the former British colonies was seen imminent to protect the economy of the United Kingdom. The UK was the fifth largest economy in the world, and the second in Europe. Histogram and EMAs 13 and 21 was expected to move lower.
USDCNH
The pair failed to breakout from 50 MA, which will send the pair lower towards a major support line. The United States and China agreed to a trade truce following the meeting of U.S. President Donald Trump and Chinese President Xi Jinping during the G20 Leaders Summit in Japan. However, the renewed optimism on both sides could be derailed by the U.S. sale of its military equipment to Taiwan. China considers Taiwan as its wayward province, while the U.S. was bound by law to support group promoting democracy. China said it will sanction U.S. firms who provided the military equipment to Taiwan, which threatens a renewed trade war between the two (2) largest economies in the world. The U.S. imposed 25% tariffs on $200 billion worth of Chinese goods and threatened to do the same on the remaining $300 billion Chinese goods. Histogram and EMAs was seen to crossover during the current trading session.
CADJPY
The pair failed to sustain its strength after it broke out from 200 MA, which sends the pair lower towards an uptrend support line. 2019 was the best year for Japanese economy following its successful ratification of the pacific rim trade pact, the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership), after the US withdraw in 2017. The pact was spearheaded by former U.S. President Barack Obama and was ended by his predecessor U.S. President Donald Trump. Aside from the CPTPP, President Trump voiced his concern about the unfair trade practices of its neighbors Canada and Mexico, which pave way for the ratification of NAFTA (North American Free Trade Agreement). Japan had since then encouraged Canada to boost its trades in the CPTPP making Japan a major influence in the group. Histogram and EMAs 13 and 21 had recently crossed over signaling a short to medium-term downward movement.
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