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The pair was expected to further rally in the short term before continuing the down trend. During the G20 Leaders Summit in Buenos Aires, Argetina, French President Emmanuel Macron was seen talking with Saudi Arabia’s de facto leader and Crown Prince Mohammed bin Salaman (MbS) that circulated online and give investors the interpretation that Macron was stepping up its game and preparing to lead the European Union, after German Chancellor Angela Merkel decided to no longer run in her party’s leadership and will step down as Chancellor on 2021. However, his home country was in chaos due to “Yellow-Vest” protest that prompted Macron to declare a State of Emergency. Histogram and EMAs 13 and 21 is about to reverse and cross over, while MAs 50 and 200 was about to enter the “Death Cross”.
The pair is seen to go lower in a major support line. Japan, together with Australia, will lead the ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) with 7 out of 11 members already signed the revised deal, and was expected to be official before the year ends. Aside from that, Japan and Australia cooperated with the United States to counter China’s aggression in the Asia Pacific. Japan was also trying to minimize the effect of Trump’s trade war by making trading relations with China. The withdrawal of the United Kingdom from the European Union will derail the plan of the EU to extend its influence in Asia Pacific as most of the ships used was from the UK. Histogram and EMAs 13 and 21 were flat, but MA’s entering the “Death Cross” makes the pair bearish.
The pair will go down as an impending “Death Cross” looms. The isolation of the United States and Trump’s trade war disrupted the global order, causing countries to seek trading relations with other countries to offset the tariffs imposed by the United States. The US withdraws from TPP last January 23, 2018, but remaining member agreed on May 2017 to revive the pact, and was expecting the ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) to be official by December 30, 2018. Now, Trump threatens the US Congress, which the Democrat wins the majority in the House of Representative, that it will withdraw the United States from the current NAFTA (North Atlantic Free Trade Agreement) if the revised “new” NAFTA, also known as USMCA (United States, Mexico, Canada), will not be passed. Canada was pressured to take sides between the agreement with the United States or to seek bilateral trade relations with China.
The pair is expected to continue falling after it entered the “Death Cross”. The United Kingdom’s future remains in dim as the negotiated deal by Prime Minister Theresa May was struggling to be passed by the UK Parliament. May warned the MPs (Members of the Parliament) that the option after the Brexit deal was a “No Deal, which might put the country into recession. The deal indicates that the United Kingdom will remain in the Single Currency Market and Customs Union to prevent a hard border between the Republic of Ireland, a member of the European Union, and Northern Ireland, which is a part of the United Kingdom. The deal also states that the UK will be able to make trading relations with other countries outside the bloc. Japan on the other hand, was trying to offset the impact of trade war by making trading relations with China, and leading the ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership). Histogram and EMAs 13 and 21 shows selling pressure from Investors.