Daily Market Charts and Analysis January 21, 2019

Here are the most recent and most relevant stock market charts and analysis. Check them out below!

EURCAD

The pair was expected to bounce back in the following days with the formation of the “Golden Cross” and the “Rising Wedge” pattern. As Canada became the battleground for the economic-turned-political war between the United States and China, the country will be needing to look for alternative allies that will counter Trump’s imposed tariffs and the missed opportunity from China, the world’s second largest economy. Canada had ties with two of the largest trading bloc in the world – the recently ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership), which was expected to account for 1/3 of the world’s global export, and the CETA (Canada-European Union Comprehensive Economic and Trade Agreement), with the European Union as the largest trading bloc in the world. However, Canada was distracted with its conflict with China after it arrested Huawei’s No.2 that received retaliation from China by arresting thirteen (13) Canadian citizen, with one of them sentenced to death. Histogram and EMAs 13 and 21 was about to reverse.

NZDJPY

The pair was having a hard time to sustain its breakout of the “Falling Wedge” pattern, with the impending “Death Cross” to put more pressure on the pair. In the recent months, New Zealand was seen to be getting out of Australia’s shadows, with the deportation of New Zealand nationals from Australia as evident of the division between the two countries. The country has then sought to establish itself as an independent nation that is willing to cooperate with world powers to promote regional stability. However, Japan had also plans to bring back its former glory by taking the lead with the ratification of CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) and the EU-Japan Free Trade Deal. It also announced a 5-year military spending of at least $240 Billion in response to security challenges in the region and to narrow its trade surplus with the United States. This move suggested that Japan might be developing aircraft carriers for the first time since World War II. Histogram and EMAs 13 and 21 was expected to go down in the following days.

USDHKD

The pair will continue its rally to retest its previous high. The United States and Hong Kong’s relationship had been beneficial for the two (2) countries in the past decades. However, Hong Kong was already losing its limelight, particularly with the creation of a bridge linking Hong Kong and Macau to mainland China, which poses as a threat that the world might see the city state as just another Chinese province. The integration of Hong Kong and Macau was a move to integrate China’s financial hub, that will counter the United States’ Wall Street. The move was timely given that the United Kingdom was about to depart from the European Union, which means that investments from other EU countries will be cut, given that the UK will no longer stay in the Single Market, which guarantee the free movement of goods, capital, services, and labor. Histogram and EMAs 13 and 21 will continue to go up.

USDSGD

The pair was expected to fall lower in the following days with the formation of the “Death Cross”. Singapore’s December export fall 8.5%  in its worst decline in two (2) years. The unexpected decline comes despite the ongoing trade talks between the United States and China. The two countries agreed to a 90-day trade truce following the fall of emerging market economies. In response to this Singapore Finance Minister Heng Swee Keat will deliver a speech regarding the 2019 budget, which focuses on Social Needs, Economic Structuring, and Military upgrade. Singapore will purchase an F-35 Jets from Lockheed Martin to replace the Republic of Singapore Air Force’s fleet of F-16s. Singapore is a regional security partner of the United States together with Japan, which also recently announced its 5-year military spending record on which many experts believed would be used to create Japan’s aircraft carrier to counter China and Russia’s growing influence over the region. Histogram was already showing weakness, while EMAs 13 and 21 was expected to follow the move.