Daily Market Charts and Analysis April 21, 2020

Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.

USDBRL

Bulls continue to establish dominance in sessions, forcing the higher towards its resistance. The direction of the Brazilian real against most major currencies is still believed to be on the downside. This is cementing a strong rally for the USDBRL. Looking at the chart, it appears that since March, bulls have stepped up their game to propel the 50-day MA higher against the 200-day MA. It’s said that bears would eventually recover once the global economy stabilizes after the pandemic. However, that’s still a long shot as the number of cases around the globe continues to climb. This means that Brazilian real investors should brace themselves. They face major hurdles in the coming sessions.

Roberto Campos Neto, Brazilian central bank head, rules out rumors about an aggressive quantitative easing measure to buoy the economy. Campos Neto said money printing would only work for emerging countries, expressing concern for the Brazilian economy.

USDRON

Central European currencies such as the Romanian leu have eased in recent sessions. This is due to the number of coronavirus cases in the region jumping. Bears will have a tough time in the sessions. It’s projected that the pair will climb to its resistance level in the coming sessions. The main reason for it is the concerns of Romanian leu investors about the impending budget deficit and GDP contraction that Romania will face thanks to the coronavirus pandemic.

Romanian Finance Minister Florin Citu recently said that the government is meeting to prepare the second phase of relief package to relaunch the country’s economy. However, Citu denied elaborating his statement, giving a sense of uncertainty for the bearish investors. Meanwhile, the virus has shaken the US economy. The US dollar remains the king of the forex market. It has gained against its pairs including the Romanian leu. This is despite concerning figures from its economic activities.

EURNOK

Despite maintaining a bullish tone in the market, EURNOK investors should hit the pair’s support level in the coming sessions. The reason why is the clear heightening concern for the eurozone’s health. Analysts expect the Norwegian krone to bring the pair downwards. It is looking to recover some of its losses from the previous month. However, the question of whether bears could break through the pair’s support level remains uncertain.

Technically, the EURNOK pair remains widely bullish considering that the 50-day moving average continues to hover over the 200-day moving average. Over the recent sessions, the euro has appeared to slow down after experiencing a massive jolt in March and the rapidly worsening economic health of the eurozone isn’t helping its case. Aside from that, investors worry about the longer-term stability of the single currency as the pandemic highlights the rifts between the bloc’s members.

EURHUF

Just like any other Central European currencies, the Hungarian forint is also in danger against the euro. Despite the major hindrances faced by the single currency, it’s looking to force the pair back to its resistance in the coming sessions. The clear differences between the bloc members and the deteriorating health of the region are weighing on the euro. But the Hungarian forint is once again on the defensive against the weak euro amidst local reports from Hungary.

The Hungarian government is planning to expand its support for local businesses and companies to help cushion the impact of the pandemic on the economy. At the beginning of April, the Hungarian government has unleashed a 9.5 trillion-forint stimulus package to support the economy. That’s about $30 billion and bears are concerned about the potential damage of another stimulus measure from the government as it may once again hurt the Hungarian forint’s strength in the forex market.