Daily Market Charts and Analysis May 29, 2019

Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.

GBPAUD

The pair was seen to continue its steep decline after it broke out from 50 MA, sending the pair lower towards 200 MA. The failure of UK Prime Minister Theresa May to stop the United Kingdom’s participation in the European Parliamentary Election is hunting her back. Analysts see the country’s participation as a possibility for the UK to reverse its withdrawal from the European Union, which will hurt the country’s image among countries who signed a post-Brexit trade agreement with the United Kingdom. This might in turn pushed Australia to side with other allies following the country’s current economic turmoil as it enters recession (based on GDP per capita) for the first time in 27 years. Australia is a regional power and a major player in the Indo-Pacific with the country heading the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership). Histogram and EMAs 13 and 21 will continue to move lower.

GBPCAD

The pair was expected to move lower in the following days towards an uptrend support line. The withdrawal of the United Kingdom from the European Union prompted their allies to take sides between the two (2) powerful economies. Australia sided with the UK, while New Zealand has signed a post-Brexit trade agreement with the United Kingdom, while it maintain its existing trade relation with the EU. Canada had recently announced that it received a green light from the European Parliament for the two (2) economies to conduct a bilateral trade agreement. UK’s participation in the European Parliamentary Election and the Brexit extension until October 31 had caused worries among investors that the UK was on its way to reversing the Article 50. Aside from these, UK Prime Minister Theresa May announced her resignation in June. Histogram and EMAs 13 and 21 will fail to crossover.

USDDKK

The pair was seen to move higher after it found a strong support from a major support line and from 50 MA. Denmark has the highest satisfactory rate among the EU-member states, which makes the country fitted to replace the United Kingdom in the trilateral balance with France and Germany. However, Denmark was seen to have a close tie with the United States, which further boost U.S. influence in the region following the narrowing gap in the relationship between the United States and the European Union. The United States was also seen lobbying the Eastern and Nationalist bloc, the Visegrad Group, comprising of Hungary, Poland, Czech Republic, and the Slovak Republic. The United States had also deployed its military in Poland and Romania and had even got an offer to name the U.S. military base as Fort Trump. Histogram and EMAs 13 and 21 was poised to further go up in the following days.

GBPNZD

The pair was expected to further go lower after it broke out from 50 MA, sending the pair lower towards the uptrend channel support line and from 200 MA. New Zealand was the only member of the CANZUK (Canada-Australia-New Zealand-United Kingdom) that had signed a post-Brexit trade agreement with the United Kingdom, while maintaining its existing trade relations with the European Union. However, following the failure of UK Prime Minister Theresa May to stop the United Kingdom’s participation in the European Parliamentary Election and the Brexit extension, it will be logical for New Zealand to take side with the European Union and follow its path towards unconventional trade relations with the second largest economy in the world, China. This will further strain the United Kingdom’s image among its allies. Histogram and EMAs 13 and 21 will continue to move lower in the following days.