The pair is expected to continue to go lower after it broke down a major support from August. The European Union was expected to go into recession after the United Kingdom will go out of the European Union, since it was the largest economy among the 28 member nations. A weaker Eurpean Union, a divided Association of SouthEast Asian Nation, will make the United States to be seen as stronger under unified states and nations. The Histogram was not showing neither bullishness and bearishness, with the 13-EMA and 21-EMA apart from each other.
The pair was in the lower range, still intact with the uptrend channel. The US gain the first hand among Canada and Mexico after it pressured the two countries to go into the negotiating table that paved way to the ratification of USMCA (United States, Mexico, Canada) formerly NAFTA (North American Free Trade Agreement). Canada was now seeking another trading partner in the form of China, to counter the tariff imposed by the US to its goods. The Histogram and EMA’s supports the uptrend channel.
The pair bounced back from the support, a previous resistance from the down trend, after the pair broker it last October. Australia, together with Japan, will lead the 11 member countries of the ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) from the former TPP (Trans-Pacific Partnership) with the inclusion of the United States. The United States will loses from the ratification as the member, which mostly comprise of ASEAN Nations, which covers 1/3 of the global trade. The EMA’s might stay in the overbought region waiting for a catalyst, while histogram was already exhaust.
The pair was locked in a downtrend channel, but expected to bounce back from the support. Investors are looking for uncertainties with the United Kingdom, which is due to leave the European Union on March 29, 2018, with a 2-year transitionary period until March 29, 2021. After this, the European Union will need to face the internal challenges it had with Italy, the European Commission Election, new European Central Bank Governor, and the next leader of EU after Angela Merkel’s final chancellorship for Germany with his term to end on 2021. EMA’s were bearish, with Histogram showing buying pressure which is expected for a rebound.