Daily Market Charts and Analysis January 2, 2019

Here are the most recent and most important charts and analysis for today. Check them out!

EURRUB

The pair was expected to continue its rally in the following days. The European Union formally agreed to prolong its economic sanctions against Russia for six (6) months until July 2019. The sanction focused on finance, energy, and defense sectors, as well as dual-use goods, that were originally imposed in July 2014 after Russia’s annexation of Crimea. The decision was agreed after the hacked European cables reveal private conversations among the EU diplomats. One cable contains conversation stating that Russia may have nuclear arms in Crimea. Another leaked document states that the European diplomats described Trump’s July summit with Russian President Vladimir Putin as “successful (at least for Putin). The European Union was under pressure to impose more sanctions for Russia after the country seized three (3) Ukranian naval vessels. Histogram shows accumulation, while EMAs 13 and 21 failed to cross over.

EURPLN

The pair was seen to go lower in the following days after it entered the “Death Cross”. As the European Parliament was about to hold an election on May 23-26, 2019, Polish Prime Minister Mateusz Morawiecki is increasing its scrutiny with the European Union. PM Morawiecki accused the European Union of “not understanding” the situation in “post-communist countries” after Brussels launched disciplinary proceedings over Warsaw’s judicial reform. On December 2017, the European Parliament voted to trigger Article 7 of the EU Treaty against Poland, leading to a suspension of the country’s voting rights in the European Institutions. This issue increases the gap between the east and the west of Europe, that further divides the European Union. Eastern Europe formed CEE (Central and Eastern Europe) that was seen pivoting to China. Histogram and EMAs 13 and 21 was expected to reverse.

EURSEK

The pair is expected to break the support line of the “Widening Falling Wedge Pattern”. Sweden entered 2019 without a formal government after the Swedish Parliament rejected two candidates to lead the country. Since the election last September 09 failed to produce a clear winner, the country’s top politician had been unable to reach any agreement on a viable coalition. The Swedish Parliament will once again meet with party leaders on January 14 and will call a Prime Minister vote two days later. Failure to create a new government on January 23 will send the Swedes back to the ballot box for a general election. Social Democrats hold 100 seats in the Swedish Parliament. Historically, Sweden was able to form a government in six (6) days after Greece in five (5) days, and Malta in three (3) days. Histogram and EMAs 13 and 21 was expected to further go lower in the following days.

USDMXN

The pair was set to retest a major resistance line after accumulation was seen on MA 200. After Andrés Manuel López Obrador (AMLO) took his office on December 01, 2018 as the new Mexican president, the relationship between the United States and Mexico became better. Officials from the two countries have a hammered out a dual-track approach to tackle the flow and management of migrants heading northward from Central America to Mexico and the United States. In response to this, the United States plans to invest $5.8 Billion in Central America in hopes of ending poverty, violence, and drug-trafficking that are driving thousands of people from the region to undertake the difficult trek to the United States. Three (3) days before 2018 ends, Trump threatens to seal US-Mexico border if his proposed wall will not be funded by the US Congress. Democrats were now in negotiation with Trump for 13 days after the partial US government shutdown. Histogram and EMAs 13 and 21 is about to cross over.