Here are the most important daily charts and analysis for today. Check them out!
The pair is expected to reverse and continue its decline. Both Australia and Japan will lead the ratification of CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) that will counter the trade war between the United States and China. However, Australia was in an uncertain time as the country was expected to conduct its Federal Election beginning in the second week of April till May 18, 2019, which will mark the beginning of election. The change in leadership will affect how Australia will deal with China’s growing influence in Asia Pacific, and will face the declining trust of its people over Australian leadership. Japan on the other hand, was distancing from the United States and China by banning Chinese technology company Huawei and ZTE, and will increase its defense budget to stop relying with US ballistic missile, but plans to buy US made military equipments that will narrow the trading deficit between the two countries. Histogram and Mas 13 and 21 were in a neutral region.
The pair is expected to go up in the following days after it broke out of the “Failing Wedge” pattern. Canada was pressured to take sides between the United States and China due to trade war. Canada needs the US as it considers the country as its major trading partner, but was hit by tariffs with the ratified USMCA (United States, Mexico, Canada) Agreement that will replace the 40-year old NAFTA (North American Free Trade Agreement). With the increase tariffs, it looks for opportunities with China by making bilateral trade relations that would require it to depart from the “current” NAFTA. The major test for Canada was after it arrest Huawei’s Global Chief Finance Officer after it was pressured by the United States, but was warned by China that it will retaliate. The European Union was now stepping up to lead the world after the trade war disrupt the global order.Histogram and EMAs 15 and 21 was poised to reversed but history tells otherwise.
The pair is seen to further go lower in the following days. New Zealand was seen gaining advantage from the reshuffling of global order after its decision to ban the Chinese technology company Huawei, leaving Canada the only country among the Five Eyes Intelligence Alliance that didn’t ban the company. It was also one of the members of the ratified CPTPP (Comprehensive and Progressive Tran-Pacific Partnership) which will counter the effect of trade war among the Emerging Economies. The European Union was expected to lead the effort in promoting globalism, but was distracted from internal and external conflicts. As the United Kingdom voted to withdraw from the bloc, Angela Merkel stepped up in leading the European Union. But her policies towards immigration makes her party to doubt her leadership, and soon she decided to no longer run in her party’s leadership and was about to step down as German Chancellor in 2021. The next de facto leader of the EU was French President Emanuel Macron, but was embattled by protests in its home country. Histogram and EMAs 13 and 21 was signaling a near term reversal.
The pair was expected to break a major resistance line. New Zealand joins the United States, United Kingdom, and Australia in banning Huawei for its 5G technology due to security threat, leaving Canada among the Five Eyes Intelligence Alliance members that didn’t ban the company. New Zealand was positioning itself to take advantage of the withdrawal of the United Kingdom from the European Union by opening the first Irish Embassy. UK also announced that New Zealand was the first country to express its interest in making trading relations with the UK after it officially leave the European Union. Canada on the other hand, was looking for opportunities in other countries through bilateral trade agreement. It renewed its FTA (Free Trade Agreement) with the European Union and was trying to pivot to China, but would require its withdrawal from the NAFTA (North American Free Trade Agreement), an agreement which was seen to benefit the United States. Histogram was about to reverse while EMAs 13 and 21 was expected to remain in the overbought region.