Daily Market Charts and Analysis December 3, 2018

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Market Charts and Analysis

Here are the most important charts and analysis for the start of the week. Check them out!

GBPAUD

The pair is expected to bounce back to the down trend channel’s resistance. The departure of the United Kingdom from the European Union will give the UK the ability to make bilateral trade relations. China expressed its willingness to make bilateral trade relations with the UK after its withdrawal from the EU on March 29, 2018. Australia on the other hand, will lead the ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) to counter America’s protectionism. Though Australia considers China as its major trading partner, it was extending its effort in  countering China’s aggression in the South China Sea by granting more loans and grants to Asia Pacific, and banning Huawei from competing to supply 5G materials to the government due to national security.

chart showing GBPAUD chart movements

USDCNH

The pair is expected to go lower until February 2019. The United States and China reach a 90-day ceasefire in trade dispute following the meeting of US President Doanld Trump and Chinese President Xi Jinping during the sideline meeting at the G20 Leaders Summit held in Buenos Aires, Argentina. The trade war between the United States and China made the global market unstable as the global supply chain was disrupted. The truce will bring back the stability as Trump was supposed to impose additional tariffs from 10% to 25% with the $200 Billion Chinese goods on January 2019. The Histogram and EMAs 13 and 21 shows selling pressure from investors.

chart showing USDCNH price movement

USDTRY

The pair broker a major resistance line and was seen to further go lower in the following days. Turkey wants to pressure its allies to sanction Saudi Arabia after it admitted that Jamal Khashoggi was murdered in Saudi Consulate. The European Union, Germnay, Denmark and Finland sanctioned the kingdom by halting its arms sales. Saudi Arabia relies heavily on arms import from the Europe and America with its war with Yemen. The United States only imposed sanctions to 17 Saudi nationals suspected in killing Jamal Khashoggi. Trump repeatedly stressed the importance of Saudi Arabia’s ties with the United States. Trump rejects CIA’s (Central Intelligence Agency) investigation that Mohammed bin Salamn (MbS) was the man behind the murder, and was pressured by its allies and Democrats in the congress to make tougher stand with Saudi Arabia. Histogram and EMAs 13 and 21 were flat.

Chart showing USDTRY movements

EURBRL

The pair was seen to further go down as it enters the “Death Cross”. Among Emerging economies, Brazil turns out to be the winner from the trade war as China shifted its soybean imports from the United States to Brazil. Brazil now accounts for 80% of China’s soybean imports. The trade war disrupted the global supply chain, and countries were seeking cheaper imports elsewhere. After imposing tariffs to Canada, Mexico, Japan, and China, Trump was now pursuing tariffs to the European Union’s Auto Industry. Brands like BMW, Audi, Aston Martin, Volkswagen, Mercedes, and Ferrari were manufactured from Europe and were being exported to the United States. Histogram and EMAs 13 and 21 were about to make a price reversal.

chart showing EURBRL movements

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