Here are the most recent and most relevant forex market charts. Check them out!
The pair is expected to fall lower in the following days. In the recent days, New Zealand expands its diplomatic presence in Asia Pacific in its latest attempt to counter China’s growing influence. The country was following the step of Australia after it decided to ban Huawei equipment in the planned 5G mobile network. New Zealand was also the first country to consult a new free trade agreement with the United Kingdom after it opens the first Irish embassy in preparation for the withdrawal of UK from the European Union. Aside from this, New Zealand still maintains its trading agreement with EU, giving the country the ability to counter China, which it considers as its major trading partner. Histogram and EMAs 13 and 21 is about to reverse, but the formation of the “Death Cross” sounds a bearish tone for the investors.
The pair is expected to continue its rally. New Zealand was seen clearer after taking a more aggressive approach towards China by banning Huawei technologies, and was one of the signatories for the ratified CPTPP (Comprehensive and Progressive Tran-Pacific Partnership). It was also expanding its presence in Europe after the United Kingdom named the country as the first to seek free trade agreement. For decades, New Zealand was seen as a shadow of the bigger Australia, which was both a former colony of the United Kingdom, but was now ready to take the global stage as a member of the Five Eyes Intelligence Alliance with superpower countries Australia, Canada, the United Kingdom, and the United States.
The pair will continue to rise with the support of the impending “Golden Cross”. New Zealand was on the rise, while Canada was seen struggling with the conflict between China and the United States. There were three (3) catalyst that explains the recent movement. First, New Zealand was a signatory in the ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership), while Canada was threatened that the United States might withdraw from the current NAFTA (North Atlantic Free Trade Agreement). Second, New Zealand was flexible to deal with the European Union and United Kingdom, while Canada needs to choose whether to pursue the United States or China. And the third, New Zealand already banned Huawei with Canada the only remaining among the Five Eyes Intelligence Alliance that didn’t ban the company. Histogram and EMAs 13 and 21 shows strong support for the rally.
The pair is seen to reverse after hitting the support line. This was due to the fear that Trump will end Hong Kong’s special trading status as a financial hub. As China was seen linking Hong Kong SAR (Special Administrative Region) closer to the mainland, it might be seen by traders and investors as another Chinese city without autonomy and sovereignty. Thus will be affected by the trade war between the United States and China, and the dispute between the two countries in South China Sea. Histogram was showing exhaustion while EMA’s 13 and 21 was about to reverse and crossed over.